Iowa farmland values jumped 29% this year to an average statewide cost of $9,751 per acre, the highest such value recorded by Iowa State University since it began its survey in 1941.

The nominal land value is 12% higher than the 2013 peak in nominal land values.

The last time farmland values increased more than 25% in a year was in 2011, when values rose 32.5% due to surging ethanol demand and high commodity prices.

“The increase this year is in part due to much stronger commodity prices thanks to higher exports, stronger than expected crop yields and strong ad hoc COVID-19 related government payments,” said Wendong Zhang, an associate professor of economics at Iowa State’s Center for Agricultural and Rural Development.

Zhang leads the ISU annual Land Value Survey, which found that the average statewide value of an acre of farmland rose by $2,193 an acre since last year. The land values represent a statewide average of low-, medium-, and high-quality farmland.

While all 99 of Iowa’s counties showed an increase in land values, Scott County reported the highest value of $13,852 an acre and Decatur County the lowest value at $5,062.

The survey is based on reports by agricultural professionals knowledgeable of land market conditions, such as appraisers, farm managers, agricultural lenders, and actual land sales.