We lose three acres of farmland in the United States every minute. You read that right. Three acres every sixty seconds. This wakeup call comes courtesy of John Piotti, President of American Farmland Trust (AFT), who spoke about conservation and Farmland at the 2019 Trust in Food Symposium Jan. 15 and 16 in Chicago. “Over the last 20 years, we’ve lost 31 million acres of farmland—that’s equivalent to all the farmland in Iowa. That’s over 1.5 million acres a year, or three acres every minute,” Piotti says. READ ARTICLE
Agricultural Land Values Highlights
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,140 per acre for 2018, up $60 per acre (1.9 percent) from 2017 values. Regional changes in the average value of farm real estate ranged from an 8.3 percent increase in the Southern Plains region (includes Texas (9.1% increase) and Oklahoma (5.3% increase) to 1.4 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,430 per acre. The Mountain region had the lowest farm real estate value at $1,140 per acre.
This report from the USDA is a 22 page report. Read the full report here.
Interesting facts about measuring land. Learn the definition of measurement terms such as Acre, Hectare, Chain, etc. Contributor Tom Dorn, Extension Educator, University of Nebraska Cooperative Extension in Lancaster County. University of Nebraska Facts
George Clift was recently interviewed for a question & answer article in the January 18, 2018 issue of the Farm Journal LandOwner Newsletter. See the article here.
There are other articles about the New Tax Bill and Farmland Values you may also find interesting. Click here to read the entire newsletter.
Agricultural Survey…Quarterly Survey of Agricultural Credit Conditions in the Eleventh Federal Reserve District. The Eleventh Federal Reserve District consists of Texas, northern Louisiana, and southern New Mexico.
The survey shows, dryland and ranchland values both increasing while irrigated land values dropped. See the entire report here.
by Stephen Donnell, SR VP Lending, Plains Land Bank, Amarillo, TX
Interest rates have been about as volatile as the commodity markets in recent months. Our long term interest rates have moved up and down over three-tenths of a percent since March. Some months, it appears the Fed’s increase in short term rates is pushing long term rates higher, only to see those rates fall back the next month. Very hard to predict. We have had a number of customers recently locking in some long term money to hedge against rising interest rates. That appears to be a sound strategy, especially if you can catch a dip in rates.
As to land sales, land prices and buyer interest, it just flat depends on where you are. Areas of the Panhandle have seen some softening of land values and there are farms for sale. In other areas, the values have not backed off much, and there are very few farms listed for sale. The “crash” in land values that some feared a couple of years ago has yet to materialize, and loan demand here at Plains Land Bank is running ahead of last year.
Never Buy Land Without an ALC…. 4 reasons from an article on Land.com written by Luke Worrell, ALC
This article outlines 4 of the reasons you should never buy land without an ALC (Accredited Land Consultant)…..Trust….Skill….Knowledge…Connections.
“When it comes to selling land, I am absolutely convinced that ALCs are the best in the business. For starters, you can only become a designated ALC after you have proven yourself in the field.”
Read the entire article here.
June 6, 2017, Ag Web
Selling Opportunity for Landowners
For non-operating landowners, today’s prices offer an opportunity to sell and capture some of the land appreciation of the past few years, Dickhut says.
“So far, few farm operators are selling land, and investors continue to be in the market looking for opportunities to add acres to their holdings,” he says. “The slow decline in the land market is part of the reason some are selling.”
On the flip side, the current land market conditions also offer good buying opportunities.
See entire article on AgWeb.com
Clift Land Brokers was well represented at the 27th Annual Outlook for Texas Land Markets in San Antonio in April. As usual, a lot of great information came out of this conference. One highlight was the presentation by Dr. Charles E. Gilliland, PhD, Research Economist for Texas A & M University Real Estate Center on Texas Land Values. Click here for a copy of that presentation.
While 2017 1st quarter land values were up statewide 1.8% over 2016 4th quarter, and while other regions showed an increase, Region 1 – TX Panhandle and South Plains Region was down 3.4% over the end of last year. There was too much good information to cover on this forum, so be sure to download Dr. Gilliland’s presentation.