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August 2008 Archive for Your Precious Land

RSS By: Mike Walsten, Pro Farmer

Mike Walsten has covered major business trends in agriculture for more than 40 years.

Illinois Land Values Rise 9% In Six Months

Aug 28, 2008

Mike Walsten

A mid-year update on Illinois land values indicates the average value of an acre of Illlinois farmland rose by 9% during the first six months of 2008. The survey was sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers and was conducted by the University of Illinois. It found excellent quality farmland commaded an average price of $7,350 an acre as of July 1, up from $6,926 an acre on January 1. The July price fo good quality farmland averaged $6,630 an acre, according to the survey, up from $6,013 an acre. Average quality farmland brought $5,590 an acre on July 1 versus $4,975 an acre. Fair quality farmland averaged $4,230 an acre, compared to $4,047 an acre on January 1.

The uptrend is expected to continue, the survey states. It found 82% of those responding to the survey expected farmland prices would increase into next year.

Cash rents will rise by an average of $43 an acre for 2009, compared to 2008, the survey also found. It pegged the average cash rent at $281 an acre.

I also carry much of the details of this report in my LandOwner Newsletter. If you'd like to see a sample copy of the newsletter, just send me an email or call 800-772-0023. I'd be happy to email a copy to you. Better yet, subscribe and save $20 off the annual subscription price of $119. Just call 800-772-0023 and mention you saw the offer in this column.


 

 

USDA Releases Huge Land and Cash Rent Database

Aug 15, 2008

Mike Walsten

You'll find an extensive amount of cash rent and land values data in USDA's annual report released earlier this month. The report attempts to strike a picture of the state of land values and rents as of January 1 of each year. Yes, this is August and values have changed since the start of the year. But the report still serves as a key reference point.

The report lists average values for farmland, which includes the value of buildings and improvements on the land, cropland and pasture for most of the states. Alaska and Hawaii are not included. It also does the same for cash rents, including dryland and irrigated cash rents where appropriate. But again, keep in mind the figures represent state averages, adjust to your farm accordingly.

One way to use the report is to use the percentage changes cited in the report. For instance, USDA indicates the value of cropland rose by 10.4% nationally in 2007 to $2,970 per acre. However, the value of cropland in the Pacific region rose 2.8% while it jumped by 18.8% in the Northern Plains. The value of all farmland increased 8.8% nationally to $2,350 an acre. It rose 1.6% in the Northeast region and 15.5% in the Northern Plains. Pasture increased 6% to $1,230 per acre nationally ranging from a decline of 1.5% in the Southeast to a gain of 19.7% in the Northern Plains.

You can access the full report by going to: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1446

I also carry much of the details of this report in my LandOwner Newsletter. If you'd like to see a sample copy of the newsletter, just send me an email or call 800-772-0023. I'd be happy to email a copy to you. Better yet, subscribe and save $20 off the annual subscription price of $119. Just call 800-772-0023 and mention you saw the offer in this column.


 

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