Your Precious Land

Mike Walsten

The value of "good" Central Corn Belt farmland rose 4% on a quarterly basis during the first quarter of 2013, according to the Federal Reserve Bank of Chicago. While a gain, the pace of the increase is down from the 7% rise posted during the fourth quarter of 2012. On an annual basis, farmland rose 15% for the year ending Mar. 31, nearly matching the 16% annual increase reported for the year ending Dec. 31. The bank notes the strong annual increases noted in Illinois, Indiana, Iowa and Michigan "masked the weaker results of some areas, such as Wisconsin." The Chicago Federal Reserve Bank serves the northern two-thirds of both Illinois and Indiana, all of Iowa, the Lower Peninsula of Michigan and southeastern Wisconsin.

Michigan led the charge higher with a 24% annual increase and a 12% gain versus the fourth quarter of 2012. Iowa marks a 20% annual gain and a 3% quarterly rise. Illinois lists a 19% annual increase and a 5% rise on a quarterly basis. Indiana reports a 15% annual increase and a 4% quarterly rise. Wisconsin, however, reports a 3% annual decrease and a "no change" for the quarterly comparison.

Looking ahead, 19% of survey expect farmland values will trend higher in the second quarter of 2013 while 4% expect them to decrease. The vast majority anticipate farmland values will remain stable.

The bank survey also found cash rental rates rose 11% from 2012, a smaller annual increase than reported the previous two years. On a state-by-state basis, Illinois is up 9%; Indiana, 11%; Iowa, 13%; Michigan, 2%; and Wisconsin, 12%. The bank says district cash rental rates rose almost 10% on an inflation-adjusted basis, the fourth-largest increase in rates in the history of the survey.

If interested in seeing a copy of LandOwner, just drop me an email at landowner@profarmer.com or call 800-772-0023.

Mike Walsten

Farmland values slipped 2.3% and ranchland fell 5.1% across the Mid-South, according to the Federal Reserve Bank of St. Louis. The survey of 55 district ag bankers also found a decline in cash rents with average cash rent for quality farmland down 8.6% and ranchland/pastureland down 4.5%. Despite the slippage in values, the survey "on net, finds bankers expect land values and cash rents to continue rising. However, it appears that bankers' expectations for future land value increases have moderated somewhat as fewer responses indicate that agricultural land values will continue to climb over the next quarter," the bank states.

It should be noted the St. Louis Fed's ag banker survey is a new survey. It's first survey was conducted in the second quarter of 2012, so it does not yet have a full year's worth of data for comparison. The bank serves bankers in the southern third of Illinois, southern third of Indiana, western half of Kentucky, the eastern two-thirds of Missouri, the western third of Tennessee, northern half of Mississippi, and all of Arkansas.

The bank pegs the average value of an acre of quality district farmland at $5,111 and an acre of ranchland/pastureland at $2,274.

If interested in seeing a copy of LandOwner, just drop me an email at landowner@profarmer.com or call 800-772-0023.

Mike Walsten

The value of farm and ranchland across the Great Plains rose by double-digits on an annual basis through the first quarter of 2013, according to the Federal Reserve Bank of Kansas City. The bank says the value of dryland cropland rose 19.3%, led by a 28.1% increase in northwest Missouri. The value of irrigated cropland gained 21.5%, paced by a 24% rise in the Mountain States of Colorado, Wyoming and northern New Mexico. The Fed bank notes the pace of the increase in farmland values declined during the first quarter of 2013. After rising 7.7% and 9% in the first quarter of 2012, the value of non-irrigated and irrigated cropland rose 3.4% and 2.9%, respectively, during the first quarter of 2013. "Cropland value gains slowed compared with last year due to falling crop prices and rising input costs," the bank says. Ranchland values strengthened the most in the bank district, rising 4% versus the fourth quarter of 2012. "Ranchland value gains were driven by a lack of adequate pastures and the prospects of improving profits in the livestock sector," the bank notes.

The Federal Reserve Bank of Kansas City serves Kansas, northwestern Missouri, Nebraska, Oklahoma and the Mountain States of Colorado, Wyoming and northern New Mexico.

If interested in seeing a copy of LandOwner, just drop me an email at landowner@profarmer.com or call 800-772-0023.

Mike Walsten

The value of good southeastern farmland rose 6.2% for calendar year 2012, according to the quarterly survey of agricultural bankers served by the Federal Reserve Bank of Richmond. The bank says the market value of good farmland averaged $3,421 an acre by the end of the fourth quarter of 2012 -- 1.5% higher than than third quarter of 2012. The Fed bank says bankers responding to the survey anticipate the growth of farmland prices will change little in early 2013. Farmland values in that region have remained relatively flat since the all-time that was posted in the third quarter of 2006.

If interested in seeing a copy of LandOwner, just drop me an email at landowner@profarmer.com or call 800-772-0023.

Mike Walsten

The average cash rent in Iowa rose 7% to $270 an acre, according to the annual Iowa State University survey conducted by William Edwards and Ann Johanns. By crop reporting district, the survey found the highest average cash rent is $297 an acre, listed in the central crop reporting district, followed by $294 an acre reported in both the north-central and west-central districts. The east-central district follows with an average of $284. The northwest district reports an average of $283 an acre. The northeast district lists an average of $281 an acre. The southwest district reports an average of $257 an acre followed by $229 an acre in the southeast district and $210 an acre in the south-central district.

The 2013 state average is $18 higher than 2012's $252 average. It is $87, or 47.5%, higher than the 2009 average. That's just five crop seasons ago.

Grundy County carries the honor for the highest average cash rent. It posts an average of $363 an acre. It is followed by Ida County with an average of $343 an acre; Bremer and Franklin counties, $329; Scott and Hardin, $328; Sioux, $325; Butler, $323; and Story, $320 an acre. A total of 24 counties report an average cash rent of $300 or more.

The survey lists cash rents in ranges for high-, average- and low-quality cropland. Looking at rents for high-quality cropland, Ida leads the state with an average of $426 an acre. That is followed by Grundy with an average of $423; Scott, $420; Bremer, $418; and Butler, $400 an acre.

The highest rent listed in the survey is $610 an acre paid for high-quality cropland in Bremer County. Four counties list top-end rents of $550 an acre; five report a top-end rent of $525; one reports $510 and sixteen report $500 an acre.

Some low rents were reported, too. For instance, of the 57 counties in the upper two thirds of the state (crop districts 1-6), 14 counties reported low-end rents under $200 for top-quality cropland.

Click here for the full survey.

If interested in seeing a copy of LandOwner, just drop me an email at landowner@profarmer.com or call 800-772-0023.