Property Valuation
Iowa's agricultural land values have historically been most correlated with:
AUrban population growth
BCommodity (corn and soybean) prices and farm income✓ Correct
CFederal interest rate policies alone
DIowa's manufacturing output
Explanation
Iowa farmland values are most closely tied to commodity prices (primarily corn and soybeans) and farm income. When commodity prices rise, farm income increases, driving higher land values.
Related Iowa Property Valuation Questions
- An Iowa appraiser is reconciling the three approaches to value. She assigns greatest weight to the sales comparison approach. This is appropriate when:
- What does 'highest and best use' mean in Iowa appraisal practice?
- In the cost approach, the estimated value of land is:
- A comparable sale used in the sales comparison approach should ideally be:
- An Iowa appraiser is using paired sales analysis. The purpose of this technique is to:
- In Iowa, which type of value is used for property tax purposes?
- Iowa farmland with a CSR2 of 85 typically commands a premium over land with a CSR2 of 50 primarily because:
- An Iowa appraiser finds three comparable sales for a subject property. Sale 1 is $225,000, Sale 2 is $231,000, and Sale 3 is $228,500. After adjustments, the appraiser concludes $229,000. This process is called:
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