(Photo by Randy M. Cauthron)
Duffy is hopeful, stating several times that interest rates are low and are likely to stay low for a while. He attributes this to the federal government, saying that it is Washington's intention to keep the rates low through 2014.
Debt also came into the conversation, but Duffy does not see this as a problem.
"People are putting money back into their dwellings," Duffy said.
While things look promising, he does list a number of factors to watch. The first factor deals with the economies, both in the U.S. and in the world. The DOW is the highest that it's been since last March, and right now things look good. Agriculture relies heavily on exports, the status of other economies plays a large part in the price of land.
Another factor is the changes and costs associated farming technology. New and improved equipment comes out each year, but not all of it is necessary.
"Just because it's new doesn't mean it's for you," Duffy said. "We need to use technology that pays."
According to Duffy's research, the land price is averaging at $6,708. The previous peak was reached at 1979, and the current price far surpasses that mark.
Duffy, an extension economist in farm management at Iowa State University, is responsible for the annual land value survey, cost of crop production estimates, Iowa farm costs and returns publication. He is also the Director of the Iowa State Beginning Farmer Center. Additionally, he's a member of the American Agricultural Economics Association and Soil and Water Conservation Society.