Farmland Values Rise in Southern Corn Belt/Mid-South

Posted on 02/23/2019 11:53 AM

Despite expectations of falling land values over the past few surveys, bankers in the southern Corn Belt and Mid-South report the rate of increase in quality farmland and ranchland or pastureland values and cash rents accelerated in the fourth quarter compared with the previous quarter. The survey of bankers conducted by the Federal Reserve Bank of St. Louis found the value of quality farmland values rose 3.4% in the fourth quarter from a year earlier, a modest acceleration from the 2.5% increase registered in the third quarter. Ranchland or pastureland values increased 6.5% in the fourth quarter after increasing 1.5% in the third quarter. Similar to previous reports, proportionately more bankers expect quality farmland values and ranchland or pastureland values to decline over the next three months.

Annual Change in Farmland and Ranchland Values

Percent change in district crop and ranchland values
Federal Reserve Bank of St. Louis

Cash rents for quality farmland rose 2.9% in the fourth quarter, following a 2% gain in the third quarter. Cash rents for ranchland or pastureland rose by less, 1.3%, after increasing by 0.8% in the third quarter. Similar to farmland and ranchland or pastureland values, proportionately more bankers expect that cash rents for both types of land will decline over the next three months.

Annual Change in Cash Rental Rates

Percent change in district cash rents
Federal Reserve Bank of St. Louis

 

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