Increased prices in corn have caused the value of farmland in the northern plain states — Kansas, Nebraska, North and South Dakota — to rise 16% last year, according to the Land Values report published by the National Agriculture Statistic Service earlier this month.
The price of corn has gone up more than 50% from 2010 to 2013, while wheat prices have leveled off. The average acre in the states is now worth $2,280, which is up from $1,960 last year.
Weather conditions in the northern plain states has changed to benefit the production of corn. The states have been planting less wheat. In the Dakotas, for example, wheat production has dropped 22% since 2000. The good weather conditions are causing corn prices to decrease this year due to the crop surplus. Whether or not corp prices continue to fall, land values will be effected in the years to come.