TWENTIETH ANNUAL YEAR BOOK— PART VII 583 



Table X gives the price of Iowa farm land from 1850 to 1919: 



Year. Price per Acre. Year. Price per Acre. 



1850 $ 6 1910 $ 96 



1860 12 1915 134 



1870 20 1916 153 



1880 23 1917 156 



1890 28 1918 174 



1900 43 1919 192 



The data from 1850-1910 is from the federal census, and from 1915- 

 1919 from the Bureau of Crop Estimates. The price per acre obtained 

 from these two sources is not entirely comparable with each other, but 

 indicates the trend land prices have taken in nearly seventy years. Dur- 

 ing this time land has never gone down in price and during the past 

 generation it has advanced rapidly. lowans believe the land is going 

 higher, that it can never be bought cheaper than the present. They buy, 

 therefore, to avoid paying a higher price later on. They say there is 

 but one corn belt to grow corn and hogs and the demand for these prod- 

 ucts is increasing. They believe in Iowa and assert the fact that Iowa 

 has never had a complete crop failure, etc. This general attitude of opti- 

 mism toward land increasing in value is partly responsible for its present 

 price. 



(F) Influence of net worth on farm land prices. 



Table XI shows the purchasing power of 204 farmers who reported 

 in 1914: 



Years Owner Age of Operator. Net Worth. 



2 38 $21,170 



7 43 29,121 



12 46 38,631 



25 55 50,679 



There are two classes of buyers: First, those who will not buy 

 land if they believe the annual returns will not pay them a mortgage 

 rate of interest on the investment and pay for their labor; second, those 

 whose net worth permits them, to buy land for a home because it "just 

 suits them," regardless of the returns on the investment. 



The latter class is responsible for land selling so high in price that 

 its annual returns will not pay for it. This class does not figure in per 

 cents before buying — they want a farm and they buy regardless of the 

 price. 



The volume of business done by this class and its effect on the price 

 of Iowa land is evidenced by the fact that on March 1, 1919, the average 

 net worth of the average Iowa owner-operator was approximately $40,000. 



What farm laud will sell for is influenced quite as much by farm 

 savings as by farm earnings. Iowa farmers have been saving and they 

 believe land is a good investment as a home as well as a place of 

 business. 



(G) Opinions from representative groups concerning farm land values. 



(a) County agents. 



