Land prices rising even after year of record drought

“American farmers may have suffered an historic drought last year, but the price of their land is skyrocketing.  In Iowa, the land prices jumped 24% in 2012 and and have gained 63% over the last three years, according to a study by Iowa State University.  Last year, farmers recovered some $14.7 billion in insurance payments for crop damage, a record sum.  US government forecasters expect overall farming income to gain 14 percent this year.  ‘Farmers have cash on hand and with low interest rates, the best place to make investments is to buy more land that they can farm to be more profitable in their operation,’ said Lyle Hansen, a real estate agent.”

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