Texas Ranchland Surges 25%
The value of Texas ranchland exploded by 24.9% for 2021 compared to a year earlier, reports the Federal Reserve Bank of Dallas. In addition, the quarterly survey of Texas ag bankers found the value of dryland cropland surged 15.7% on an annual basis while the value of irrigated cropland jumped 10.4%.
For the entire district served by the Fed bank, which includes southern New Mexico and northern Louisiana, the bank notes the value of district ranchland exploded by 24.1%. District dryland cropland increased 15.4% and district irrigated cropland rose 10.9%.
The bank states: “Bankers responding to the fourth-quarter survey reported improved conditions across most regions of the Eleventh District. Survey respondents noted record yields and prices for corn and cotton crops. However, they also noted extremely dry conditions and increased input costs as major concerns for 2022. “It looks like increases in the cost of goods and services related to producing crops in 2022 will greatly reduce net profits even with crop prices above normal,” said one survey respondent. Strong demand for agricultural real estate continues, with rural real estate prices increasing almost weekly in some regions.”
Annual Change in Value of District Ranch and Cropland
Annual Change in Average Cash Rents for Texas Ranch and Cropland