Farmland values in the Southern Corn Belt & Mid-South rose 2.9% through the second quarter of 2019, according to a quarterly survey conducted by the Federal Reserve Bank of St. Louis. Bankers responding to the survey indicated ranchland or pastureland values fell slightly, by 1.2%, compared with a year ago. Cash rents for quality farmland in the second quarter fell 2.9% compared with a year ago, but in contrast, rents for ranchland or pastureland rose 4.3%. The improvement in rents for ranchland or pastureland reflects a partial recovery from the sharp decline reported in the previous survey, the bank notes.
For the twenty-second consecutive quarter, a majority of bankers who responded to the survey reported a decline in farm income compared with the same period a year ago, the bank reports. It was the highest proportion of bankers reporting lower income since the first quarter of 2016 when considering all observed data. Fewer bankers, but still a majority, expect farm income to remain lower next quarter compared with the same period last year.
Annual Change in Farm/Pastureland Values