Texas cropland and ranchland values remain stable to firmer, according to the most recent survey of ag bankers conducted by the Federal Reserve Bank of Dallas. The bank’s district covers all of Texas as well as southern New Mexico and northern Louisiana.
The bank reports irrigated cropland values “picked up notably” during the third quarter of 2019 while dryland values were stable and ranchland values declined moderately. The bank notes that on an annual basis, all three rural land categories rose versus a year earlier.
The survey reports the value of Texas dryland cropland rose 1.0% on an annual basis to an average value of $1,926 an acre. It puts the district-wide average at $1,923 an acre, up 1.9% from a year ago. It pegs the average value of an acre of Texas irrigated cropland rose 9.6% compared to a year earlier, reaching an average of $2,333. For the district, the survey pegs the district-wide average value of an acre of irrigated cropland is $2,667, up 7.7%. The average value of an acre of Texas ranchland rose 2.7% versus a year ago, averaging $2,329 an acre. District ranchland values increased 3.0%, reaching an average of $1,957.
Looking ahead, the bankers indicate they expect land values to remain stable during the fourth quarter of 2019.
The chart at the bottom shows Texas real land values over time, using 2018 dollars as the base. The chart shows the third-quarter average value of real irrigated cropland values is approaching highs notched in each of he three previous years. Meanwhile, the average value of dryland cropland has failed to retest the high marked in 2016. Real ranchland values, meanwhile, continue to trend higher.
Real Irrigated Cropland Values Turn Higher