Ag bankers in the Southern Corn Belt and Mid-South report farmland values rose slightly on an annual basis through the third quarter of 2018. The quarterly survey of ag bankers conducted by the Federal Reserve Bank of St. Louis found the value of district quality farmland rose 2.5% versus a year earlier and the value of ranch and pastureland rose 1.5%. The boost in the value of good farmland is in contrast to the 3% annual decline reported at the end of the second quarter. In addition, proportionately more bankers expect quality farmland values and ranchland or pastureland values to decline over the next three months.
The slight gains in land values come as the bankers report farm financial conditions continue to decline in the region, which covers Arkansas, southern Illinois, southern Indiana, western Kentucky, eastern Missouri, northern Mississippi and western Tennessee.
The bank also found that cash rents rose compared to a year earlier, by 2% for quality farmland and by 0.8% for ranch/pasture land.