Snapshot of US Land prices - Have they gone up or down?
- By: "Farm Tender" News
- Cropping & Grain News
- Aug 20, 2017
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In just the last 3 years both cattle and wheat prices have declined by over 30%. The profitability in agriculture has dipped sharply after cattle producers saw peak prices just 2 years ago and grain prices hit record highs 9 years ago. But what have land values done in the last year as profitability remains tight in agriculture?
Chances are most farmers and ranchers know exactly what land is selling for in their area, as well as what the land is worth (these are often different, depending on if you’re buying or selling). The USDA released their annual study this month on the trends in land values and in the Northern Ag Network region, land values were mixed. Could it be a signal that we’re moving towards seeing a drop in the price of real estate? Check out the article below, find your state and see if you agree. Then let us know what you think is driving the changes.
In the 2017 Land Value Report, an annual report that just came out in early August, the USDA estimated farm real estate values are averaging $3,080 an acre across the country this year. That’s 2.3 percent higher from last year which includes a 1.8 percent decrease in the northern plains region. The highest farm real estate values were in the Corn Belt region at $6,260, although values in that region fell 1.7 percent from the previous year. U.S. pasture values increased 1.5 percent compared with last year to $1,350 per acre. The highest state level pasture value was estimated at $12,500 per acre in New Jersey.
Montana
Montana farmland increased 2.2 percent to $920 per acre. The average value of cropland was $1,020, up 1.0 percent from 2016. The average value of irrigated cropland was $2,980, unchanged from the previous year, and the average value of non-irrigated cropland was $830, up 1.2 percent from the previous year. Pasture values were up 1.5 percent from 2016 at $660 per acre.
Wyoming
In Wyoming average farmland real estate value, was $660 per acre. This is unchanged from 2016 and 2015. The average value of cropland was $1,350, down 1.5 percent from 2016. The average value of irrigated cropland was $2,170, down 1.4 percent from the previous year. The average value of non-irrigated cropland was estimated at $760, down 1.3 percent from the previous year. Pasture values were unchanged from 2016 at $510 per acre.
North Dakota
North Dakota's farm real estate value, increased from 2016, according to USDA. Farm real estate value for 2017 averaged $1,840 per acre, up $10 per acre, 1 percent from last year. Cropland value was unchanged from last year to $2,000 per acre. Pastureland, at $850 per acre, was $20 higher than the previous year.
South Dakota
The 2017 South Dakota average farmland real estate value, was $2,180 per acre. This is a decrease of 3.1 percent from 2016 and 6 percent from 2015. The average value of cropland was $3,330, down 5.4 percent from 2016. The average value of non-irrigated cropland was $3,300 down 5.7 percent from the previous year. Pasture values were up 3.9 percent from 2016 at $1,060 per acre.
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