A 230-acre tract of Iowa farmland with "no commercial development potential" was sold recently at auction for a record $6,010 per acre. It surpasses previous record price for similar set just two weeks prior. That land sold for $5,350 per acre.
 
The new record-setting property, located in northern ClintonCounty, has a 92 Corn Suitability Rating (which is excellent). The auction listing cited it as "flat and black". The purchaser was a neighboring farmer.

In December, IowaStateUniversity issued its annual farmland-value survey, which reported an average value of $3,200 per acre in the state. "The ClintonCounty sale, obviously, establishes a new benchmark for land values in the state," an area banker said.

Agricultural and real-estate consultants has anticipated a run up in farmland prices and rents in response to the growing "ethanol fever," especially in the Midwest. The question is how far will the biofuels and feedstock demands push prices?

Source: Iowa Ag Connection