The value of US farmland rose by 8.1% from 2013 values, according to the 2014 Land Values Summary, published by the USDA earlier this month.

Farm real estate values, which include land and buildings, had an average price of $2,950 per acre (€2,203/ac).

The highest land values were in the corn belt region of America (Illinois, Indiana, Iowa, Missouri, and Ohio), where land averaged $6,370/ac (€4,756/ac). The mountain region (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming) had the lowest land values at $1,070 per acre (€799/ac).

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Randy Hertz, of Iowa-based Hertz Farm Management, said that while prices were very high in the corn belt region last year, they are beginning to recede. Not only this, but the number of farms sold in the area is dramatically down since 2008.

“Our market here is significantly down in terms of the numbers selling. Land owners simply don’t want to sell,” said Hertz. “In the corn belt, we have actually seen a slight softening of land values in recent months.”

The price of farmland in the US soared in recent years as grain prices hit record highs after poor American harvests left a global supply deficit. But with a record harvest last year and another big one expected this year, land prices have come back slightly.

According to Hertz, another reason that people are buying land in America is because they see it as a safe investment.

“More than half the land here in the corn belt is owned by investors who have never set foot on it. They buy large areas of farmland because it gives a better return than sitting in a bank deposit.”

With interest rates at all time lows in America, investors are buying land and renting it back to farmers where they can get a 5% to 6% return on their investment each year.

The average cost of renting land in the corn belt region is currently €400-€450 per acre, with an increasing trend toward cash transactions.

The average farm size sold this year in the corn belt region was just over 100 acres, but the farm size and price paid can vary dramatically. For instance, 80 acres in Illinois fetched $11,900/acre, while a 720-acre farm in New England made $1,540/acre.

Similar to Ireland, soil quality has a big say on price but other factors such as creeks/streams running through land, small field sizes or irregular field shapes can negatively impact on land value in the US.

With huge machinery, the preference is for rectangular, well-spaced fields.