US farm land prices surge despite drought

American farmers may have suffered an historic drought last year, but the price of their land is skyrocketing.

In Iowa, the US's biggest producer of corn, the land prices jumped 24 percent in 2012 and and have gained 63 percent over the last three years, according to a study by Iowa State University.

The drought and heat wave last year may have severely damaged crops, but ironically it has made crop land ever more valuable.