Iowa farmland sale sets record at $20,000 per acre

A land sale in northwest Iowa set a new state record this week when someone paid $20,000 per acre for a 74-acre parcel.

Farmland prices have been soaring across the region this year because of high crop prices and low interest rates.

Iowa State University economist Mike Duffy says the price at Wednesday?s sale was exceptional.

KCCI television reports the previous record was set in October at another sale in Sioux County. A 120-acre tract drew $16,750 per acre at that sale.

In September, the U.S. Department of Agriculture said Iowa?s cropland value increased by nearly 24 percent between 2010 and 2011. The average cropland value in Iowa was $5,700 an acre.

Iowa State will release its report on the state?s farmland later this month.