MOUNT VERNON, Iowa — Strong commodity prices and farmers buying additional land were some of the factors that caused Iowa farmland values to jump nearly 11 percent over the past six months, according to a semiannual agricultural Realtors survey.

“For the last six months, farmers have still been the primary buyers of farmland,” said Troy Louwagie, an accredited land consultant and licensed land broker with Hertz Farm Management, Inc. in Mount Vernon, who conducts the survey for the Iowa Farm & Land Chapter No. 2 Realtors Land Institute.

Released March 15, the survey showed cropland values soared to 10.8 percent to an average $9,370 per acre from September 2011 to March 2012. The survey indicated medium-quality cropland reached $7,148 per acre; low-quality cropland hit $4,879; non-tillable pasture climbed to $2,418; and timberland hit $2,064.

The survey also indicated the most expensive high-quality cropland is in northwestern Iowa, which averaged $10,656 per acre. Conversely, the least expensive high-quality cropland is in south-central Iowa, which averaged $7,089.

In addition, south-central Iowa is the only district to report an average value for high-quality cropland at under $8,000 an acre. West-central Iowa listed an average price for high-quality cropland at $10,186 per acre.

The survey also indicated all nine Iowa crop reporting districts showed an increase. The districts varied from a 9 percent increase in northeastern Iowa to a 12.9 percent increase in southwestern Iowa over the past six months.

The average value of good quality farmland in northwestern Iowa rose 11.6 percent to $10,656 per acre the past six months. In east-central Iowa, the average value of good farmland for corn production rose 9.4 percent to $9,480 per acre over that six-month period.

Conducted every six months since 1978, the survey’s participants are farmland specialists who are asked to comment on the current status of the Iowa farmland market. In this survey, they were asked to estimate the average value of farmland as of March 1.

Although farmland values didn’t rise as fast as the previous year, combining the 10.8 percent increase with the 12.9 percent increase reported in September 2011, the results indicated the statewide average increase was 23.7 percent for the year from March 1, 2011, to March 1, 2012.

“These estimates are for bare, unimproved land with a sale price on a cash basis,” Louwagie said. “Pasture and timberland values were also requested as supplemental information.”

Factors contributing to the increase in farmland values over the past six months were strong commodity prices; favorable, long-term interest rates; and limited amount of land offered for sale, Louwagie said. Moreover, other factors included the lack of stable alternative investments, livestock prices and fear of inflation.

“We still see investors in the market, but investors can be a little more selective as to the location and quality of the farm,” Louwagie said. “Farmers generally will purchase a farm in their home area.”

In fact, last December farmland in Sioux County in the far northwestern corner of Iowa sold for a record $20,000 per acre.

“We do continue (to see) outside investors interested in purchasing land,” Louwagie said. “The stock market has recovered nicely over the last six months, but many investors are still cautious of the stock market. Land has been a very solid investment as it has appreciated over 50 percent in the last two years.”

At the same time, however, urban sprawl has had minimal effect in the land market over the last six months, Louwagie said. “The housing market is still stagnant across the U.S.,” he added. “Once our economy turns around, we will definitely see more 1031 exchanges, which will ultimately drive farmland values.”

The survey also cited concerns that could affect farmland value in the future, such as higher input costs, increase in interest rates, larger amounts of land being offered for sale, lower commodity prices and continued uncertainty of the U.S. and world economies.

“Input costs continue to increase as everyone wants a piece of the pie,” Louwagie said. “This will definitely tighten margins, which place farmers/operators more at risk. We have been fortunate to have good yields and prices over the last three years, which allowed many farmers to pay off considerable debt and put themselves in solid positions.”

Although last summer’s sporadic weather downed corn and introduced various crop diseases to Iowa fields, he said “fortunately, the corn still yielded fairly well.

“Southeast Iowa was extremely dry, which hurt yields and held crop prices strong. The 2012 weather will play an important part in overall production and commodity prices, which will ultimately affect land values.”

Overall, Louwagie said both farmers and Realtors are optimistic 2012 will be a good, productive year.

“We are very dry in some areas in northwest and north-central Iowa, which does cause concern,” he said. “If we do have lower yields in some areas, this will increase commodity prices, which could continue to drive farmland values in the good areas.”