FARM LAND VALUES IN IOWA. 



35 



The general truth of the proposition that owners of Iowa farms 

 have acquired present net worth largely by increase in land values 

 may be roughly tested by interpreting available facts with regard to 

 the average period of ownership and the average increase in land 

 values for the period. The essential facts are shown -in Table XXI. 



Table XXI. — Average present age of owners who operate their farms, average years an 

 owner, average years of ownership of present farm, Tama district. 



Age groups. 



Average 



present 



age. 



Average 

 years an 

 owner. 



Average 



years 



owner of 



present 



farm. 





28.5 

 36.5 

 46.1 

 56.2 



3.8 



8.9 



12.1 



21.2 



3.4 





7.4 





10.5 





16.1 









44.0 



12.7 



10.5 







The average period of ownership is 12.7 years. Assuming that the 

 acreage owned throughout the period has been the same as the present 

 acreage owned, the average addition to not worth for the period of 

 ownership from increase of land value alone may be estimated at 

 over $60,000. As shown in Table XX, the average net worth on 

 March 1, 1919, was $65,464. However, of the total increase a little 

 more than $18,000 occurred from March, 1919, to August, 1919, making 

 a corresponding addition to net worth. Accordingly, it appears that 

 of a total net worth of about $84,000, approximately $60,000 is due to 

 increase of land value. 



It may be said, of course, that it is incorrect to assume that the 

 same acreage has been owned throughout the period of ownership, 

 and there can be no doubt that this introduces a factor of uncertainty 

 into the estimate, especially in view of the fact that there has been 

 a tendency for the average size of Iowa farms to increase. However, 

 the fact should be noted that there is no discernible tendency for 

 the average size of the farm to increase with the age of ownership. 

 Indeed, there is a decline during the first three age-groups, with a 

 slight increase in the last. Moreover, the assumption takes no 

 account of the increment of value obtained from parcels of land 

 acquired and resold, nor of the increment from additional farms 

 owned by the individual farmer. Consequently it is not improbable 

 that at least $60,000 of the total net worth of farm owners in the 

 Tama district may be accounted for by increased land values. 



Moreover, the farmers have attained their present net worth in 

 part by inheritance, gift, and marriage. The double influence of 

 inheritance, marriage, and gift on the one hand and of retirement from 

 farming on the other is shown by the small difference between the 



