The value of Texas crop and ranchland rose in 2017, according to the Federal Reserve Bank of Dallas. The bank's quarterly survey of ag bankers found the value of dryland cropland rose 4.6% on an annual basis while the value of irrigated cropland increased 2.6%. In addition the value of Texas ranchland increased 4.1%. The bank's district includes southern New Mexico and northern Louisiana. The bank reports the value of district cropland rose 4.2%, district irrigated cropland increased 3.2% and district ranchland rose 3.8% versus a year earlier.
"Demand for agricultural loans overall continued to decrease for a ninth consecutive quarter," the bank states. Loan renewals and extensions continued to increase, while the rate of loan repayment stabilized after falling last quarter. Overall, the volume of non-real-estate farm loans was lower than a year ago, as was the volume of farm real estate loans. The volume of operating loans increased; all other loan categories’ volumes fell year-over-year this quarter.
The anticipated trend in the farmland values index remained positive for a third consecutive quarter, suggesting respondents expect farmland values to trend up in the upcoming months, the bank observes.