Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1920-06-07
IOWA LAND VALUES.

Iowa Homestead Much has been said
and written about last years advance
in Iowa land values, but the most re-
liable information concerning this
matter is contained in Il report recently
published by the U. s.. department OF
agriculture. This report. is based up
on an investigation conducted by the
department OF agriculture in coopera-
ton with the Iowa State college, COW
ering 60 counties in the state. A total
of 1414 sales made during the first nine
months Of last year were carefully
studied and analysed. Based upon
these and upon many inquiries in re-
gard to land values it appears that the
average increase in Iowa land values
last year were carefully studied and
%ana1yzed. Based upon these and upon
many inquiries in regard to land val
ues it appears that the average in
crease in Iowa land values last year
was SOB an acrc-a greater advance
fhan took place in the 50 years ending
with 1900. Since 1915, however, the
average increase the state Over has
been $121 an acre
Much speculation in regard to the
probable effect this advance will have
upon the future agricultural pros
perity of the state has been INDUCED
in. while the boom was at its height
last summer many predicted dire dis
atscr to the state especially by March
LIST this year, OH settlement day, but
March LIST came and passed without
anything unusual happening, to the
great disappointment of calamity
howlers, and there is still not a cloud
Oh the horizon indicating an approach
ing storm. On the other hand land Is
beginning to change hands again at an
advance over prices current at the close
OF last years trading.
From this investigation it appears
that 65 per cent of last years : land
buyers were farmers while only SO per
cent of the sellers were farmers and
10 per sent Of these were retired farm
prs. From this it follows that no class
of buyers had greater faith in Iowa
land than the farmers themselves.
When ever a farm sells at Il high
price the question at once arises:
''How can the farm pay out on such a
vallle?' AS matter of fact,few Iowa
farms bought at last years prices will
pay oyer three per cent on the invest
ment and many willsnot do that, Tut
this is nothing new. Land seldom
earns current rates of interest on the
money invested in it. Conservative
farmers who have money to inyes: in
land figure-that it is safer in land than
in anything else and would rather ac-
cept a low rate of interest on an Iowa
land investment, than invest their sur
plus in something that promises two
or three times the returns but carries
with it an element of a considerable
risk. Then, too, a good farm has a
definite home value that can scarcely
be measured in dollars and cents and
no one appreciates that better than
the intelligent and industrious farmer.
A 160-acre farm selling at $500 an
acre, or $4,000 may be considered by
some men to have a home value of
10000 upon which no interest is eS-
pected any more than a city man eX-
poets to earn interest on the money
invested in his home. A man with that
idea, therefore, may figure his land as
Il producing unit at $2S,OO0 on which
he can earn > per cent interest which
is less than three per CEN OF the, total
value. The man with meager funds,
of course, cannot afford to look ut his
land investment in that manner, but
there are thousands in Iowa who can
and do, and that is one Of the main
why the commercial value Of
Iowa land is ana for years past has
been considerably above its produce;