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Farmland values rise in second quarter 2013

August 20, 2013

Ed Phillips - Delta Farm Press

Farmland values in the Federal Reserve district that includes most Mid-South states were up in the second quarter of 2013. On average, farmland values in the Federal Reserve’s Eighth District were higher than first-quarter 2013 and second-quarter 2012 levels.

In the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis, many lenders said they expect prices for quality farmland and ranch and pastureland to increase in the third quarter relative to the third quarter of 2012.

The Eighth Federal Reserve District includes all or parts of Arkansas, Mississippi, Missouri, Tennessee, Kentucky, Illinois and Indiana.

Quality farmland prices averaged $5,672 per acre in the second quarter of 2013, up 11 percent from an average $5,111 in the first quarter of 2013 and up more than 20 percent from $4,705 per acre in the second quarter of 2012. Ranch and pastureland prices were also slightly higher in the second quarter of 2013, with district lenders reporting average prices of $2,372 per acre, up about 4 percent from $2,274 per acre in the first quarter 2013 and up close to 1 percent from $2,349 per acre the previous year.

The survey for the report was conducted from June 11 through June 28, 2013. The results were based on the responses of 48 agricultural banks located within the boundaries of the Eighth Federal Reserve District.



USDA 2013 Land Values Summary - Agricultural Land Values Highlights:

August 2, 2013

The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $2,900 per acre for 2013, up 9.4 percent from revised 2012 values. Regional changes in the average value of farm real estate ranged from a 23.1 percent increase in the Northern Plains region to no change in the Southeast region. The highest farm real estate values were in the Cornbelt region at $6,400 per acre. The Mountain region had the lowest farm real estate value at $1,020 per acre.

The United States cropland value increased by $460 per acre (13.0 percent) to $4,000 per acre. In the Northern Plains and Corn Belt regions, the average cropland value increased 25.0 and 16.1 percent, respectively, from the previous year. However, in the Southeast region, cropland values decreased by 2.8 percent.

The United States pasture value increased to $1,200 per acre, or 4.3 percent above 2012. The Southeast region had the largest percentage decrease in pasture value, 1.5 percent below 2012. The Northern Plains had the highest increase at 18.4 percent.

  The full report can be found at: