The value of Central Plains cropland rose 25% to 30% on an annual basis through the first quarter of 2012, posting back-to-back 20%-plus increases for the first time in survey history. That's according to a survey of 235 ag bankers conducted by the Federal Reserve Bank of Kansas City. The Kansas City bank serves Kansas, northwest Missouri, Nebraska, Oklahoma and the mountain states of Colorado, northern New Mexico and Wyoming.
The value of dryland cropland rose 25% and irrigated cropland rose 30%, the bank reports, while the value of district ranchland rose 16%. On a quarter-versus-quarter basis, the value district dryland and irrigated cropland surged sharp 8% and 9% gains, respectively, the bank says. Ranchland values rose a strong 7%, compared to the fourth quarter of 2011.
Nebraska once again led farmland value gains for the district with increases of 38.6% for dryland cropland, 41.4% for irrigated cropland and 26.1% for ranchland. Kansas followed with gains of 24% for dryland cropland, 25.9% for irrigated cropland and 22.3% for ranchland. Northwest Missouri saw increases of 13.5% for dryland cropland and 7.1% for ranchland. Oklahoma reports an annual increase of 8.9% for dryland cropland and 6.1% for ranchland. The mountains states report increases of 17.4% for dryland cropland, 19% for irrigated cropland and 12% for ranchland.
The value of Central Corn Belt farmland increased 19% on an annual basis through March 31, 2012, according to the Federal Reserve Bank of Chicago. In addition, the value of "good" agricultural land rose 5% in the first quarter versus the fourth quarter of 2011, according to the survey of 231 agricultural bankers. The Chicago Fed Bank serves the northern two-thirds of Illinois and Indiana, all of Iowa, the lower peninsula of Michigan and southeastern Wisconsin.
Iowa continued to the lead the pack with a 27% annual increase, followed by Illinois with a 20% rise, Indiana with a 15% gain, Michigan with a 7% increase and Wisconsin with a 13% gain.
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