The value of Texas dryland cropland and ranchland rose 8.5% and 6%, respectively on an annual basis through the first quarter of 2020, reports the Federal Reserve Bank of Dallas. The quarterly survey of agriculture bankers also found the value of irrigated Texas cropland rose a slight 0.3% versus a year earlier.
The bank’s district serves all of Texas as well as Southern New Mexico and Northern Louisiana. The bank notes the value of dryland cropland noted an annual gain of 9% across its district, irrigated cropland rose 1.1% and district ranchland rose 6.7%.
The bank survey noted gains in nearly all 13 of its sub-regions in the value of dryland cropland. The lone exception was the 2.4% decline in East Texas. For irrigated cropland, the survey shows gains in 10 of the sub-regions. The exceptions are a 5.8% decrease in the Southern High Plains, a 0.7% decline in South Texas and a 2.1% decrease in Southern New Mexico. Ranchland values rose in 12 of the 13 sub-regions with South Texas the lone exception with a 3% decline.
In its comments about the survey, the bank notes: “Bankers responding to the first-quarter survey reported overall better conditions across most regions of the Eleventh District. They noted that a mild winter has allowed some farmers to be ahead of schedule. Above-normal rainfall so far in 2020 may contribute to better crop yields. Unfortunately, survey participants also noted that the negative impact on commodity prices from the coronavirus (COVID-19) outbreak has changed the outlook for 2020 from one of challenge to one of extreme concern.”