This Property Is Soaring in Value

Farmland is hot property these days. Nationwide, it is up nearly 9 percent from a year ago.

Iowa farmland has increased in value 18 percent. South Dakota’s value has risen 21 percent.

The rise reflects rising profits from agriculture. The use of corn to create ethanol has driven up the price of corn and beef cattle that feed on corn.

The U.S. Department of Agriculture estimates that farmers will earn a record $95.7 billion this year, 10.3 percent more than last year and 57 percent more than the 10- year average of $61.1 billion.

While some wealthy landowners celebrate this, average farmers and young people who want to own their farms are shut out.

"There are a whole lot of young people wanting to farm – both children of farm families and young people from cities and suburban towns who want to farm," says Teresa Opheim, executive director of Practical Farmers of Iowa. "The price of land is making it very, very difficult for them to get started, even to come up with a business plan that's viable."

Source: The Christian Science Monitor, Richard Mertens (11/18/08)