Farm Income and Land Prices are Both Falling, St. Louis Fed Survey Finds
Prices of crop land are beginning to fall as a long slump in farm income continues, the St. Louis Federal Reserve Bank reports.
The Fed's quarterly survey of agricultural bankers, conducted in June, found that prices for quality farmland were down 3.5 percent in the past year.
Ranch or pasture land, however, got 1.6 percent more expensive, even though rents on such land fell by 9 percent. One banker said prices within a short drive of St. Louis are holding up especially well.
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Farm Real Estate Value Averaging $3,140/Acre for 2018
The U.S. Department of Agriculture reports that U.S. farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,140 per acre for 2018. This is up $60 per acre (1.9%) from 2017 values.
Regional changes in the average value of farm real estate ranged from an 8.3% increase in the Southern Plains region to 1.4% 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.
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Wisconsin Farmland Value Steady as Cropland Prices Drop
MADISON, Wis. — U.S. Department of Agriculture data figures show that the value of farm real estate is up slightly in Wisconsin this year, but that the value of cropland is down.
Farm real estate includes the value of land and buildings, Wisconsin Public Radio reported. The department's National Agricultural Statistics Service found that the average price per acre in Wisconsin is $5,320, a 2 percent increase from 2017.
The total value of the state's farmland and buildings was $74.9 billion in 2017, a 9 percent increase from the previous year.
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Is Climate Change Being Falsely Accused of Sparking California Conflagrations?
Blaming climate change for the recent California fires and the state’s water woes appear to be like the kid blaming his dog for eating his homework.
The reality of climate change isn’t the issue. The earth’s climate has warmed and cooled since the beginning of time. Mankind’s impact on climate change remains debatable and laced with hyperbole that does little to solve problems but much to perpetuate political agendas and poor public policy.
Not to be out done, President Trump jumped into the mix recently with a typical tweet that cast the blame on state officials for taking water that otherwise could be used to extinguish fires. While California and the feds seem to be in the business of banning human access to fresh water, that’s not the issue.
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Local Ag Values Remain Steady While State Trends Down
For the fourth consecutive year, a survey of Nebraska agricultural land indicates declining values, possibly due to crop prices and property tax levels.
The Nebraska Farm Real Estate Survey of appraisers, farm and ranch managers and agricultural bankers returned a statewide average drop in value of 4 percent, putting values at $2,720 per acre in 2017. Results of the survey, conducted by Hertz Ag, are divided into seven land classes, with tillable grazing land seeing the steepest decline statewide at a 7 percent drop.
“The fourth consecutive year of declining Nebraska agricultural land prices reflects the steady year over year reduction in farm income resulting from lower commodity and cattle prices combined with yearly increases to property taxes,” explains Hertz Farm Manager Scott Henrichsen. “We’re going to see a continual decline in land values so long as farm income for Nebraska farmers
remains low with 70% of all farm land purchased each year by existing farmers and ranchers. Taxes are too high to incent investors and farm income too low with credit too tight for farmers to be aggressive with their land purchases.”
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Weekly property review: Do wind turbines or solar panel arrays add or subtract from property value?
Solar panel arrays, wind turbines and telecommunications towers are popping up on farms and
grazing properties from northern Queensland through to Tasmania, providing producers with a
steady, passive income stream, particularly valuable now as many battle drought. The question is
how will they affect property values?
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Compare Your Cropland Value, Rent Payment to Southeast Averages
The average value of cropland and rent can vary from year to year in the Southeast, and between this year and last, averages dropped in some locations and went up in others.
The good people at the National Agricultural Statistics Service Southern Region did the surveying and computation and released the most-recent Land Values and Cash Rent report Aug. 3.
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10 Things to Know About Ag Trade
David Oppedahl won’t comment on politics, but he can tell farmers how to take an impartial and practical view of ag trade. Oppedahl, a senior business economist with the Federal Reserve Bank of Chicago, grew up in rural South Dakota and now works with five Midwestern states close to his office: Iowa, Illinois, Indiana, Wisconsin, and Michigan.
This is one of his mottoes about trade: “We all need to try new things. That is especially true for export markets.”
Oppedahl shares the following 10 basic things to keep in mind about trade.
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Winegrape Growers in Napa Gearing Up For Harvest
Vineyardists in California’s prime winegrape growing region are gearing up to begin harvesting a crop that’s likely to top the 4 million ton mark statewide for the third straight year.
The Napa Valley Grapegrowers organization reports that veraison, an annual benchmark of the winegrape growing season, has been under way since about the third week of July. Known as the onset of ripening, veraison “marks the colorful transition from grape growing to grape ripening, resulting in several changes in fruit development,” the organization explains in a news release.
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In Memory
Sharon LimkemanOttumwa, Iowa
ASFMRA has learned some very sad news. Darrell Limkeman, AFM, ARA’s wife, Sharon, passed away on August 10, 2018. Many ASFMRA members, significant others, and affiliates know both Darrell and Sharon. Sharon has attended ASFMRA Annual Conferences. Many of us made friends with her over the many years that the Limkeman’s have been involved with the Society and the Iowa Chapter. Sharon will be greatly missed. Our prayers and thoughts are with Darrell and his family.
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