Sep 23, 2014
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November 2013 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.

Rural Bankers Expect Farmland Prices to Decline by 1% in 2014

Nov 21, 2013

Mike Walsten

Rural bankers across 10 midwestern states expect farmland values to decline by 1% next year, according to the monthly Rural Minstreet Index (RMI) survey conducted by Dr. Ernie Goss, Creighton University. The RMI, which ranges between 0 and 100 with 50.0 representing growth neutral, was unchanged from October's moderate 54.3. "The overall index for the Rural Mainstreet Economy continues to point to positive, but slow economic growth in the months ahead," says Goss.

For only the second time in the past 12 months, the farmland-price index advanced. The November index rose to 54.3 from 50.9 in October. "Despite the expansion in the index for the month, I expect farmland prices to grow at significantly slower rates for the first six months of 2014 than they did for the same period in 2013. In the November survey almost half, 49.1%, of the bankers indicated they expect farmland prices to decline by an average of 1% over the next 12 months," Goss says.

Dan Coup, president of the First National Bank in Hope, Kan., responded, "Based on sales at recent public auctions, it appears there is a definite weakness in (farmland) prices in some of our market areas. In my opinion due to two factors - declining wheat and corn prices and an increase in farmland acres being offered for sale."

Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.

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

Fed Surveys Reflect Flattening in Midwestern Farmland Values

Nov 18, 2013

Mike Walsten

The value of Midwestern Farmland continues to flatten, according to two recent surveys from Federal Reserve Banks. Central Corn Belt farmland rose just 1% during the third quarter versus the previous quarter, reports the Federal Reserve Bank of Chicago. The value of Central and Southern Plains dryland and irrigated cropland rose 0.9% and 2.8%, respectively, and ranchland increased 2% in the third quarter compared to the second quarter, reports the Federal Reserve Bank of Kansas City.

The Chicago Fed bank indicates the value of "good" agricultural farmland rose 14% on an annual basis for the period ending Sept. 30. The value of Indiana farmland surged 18% followed by a 17% rise in Michigan, a 16% rise in Illinois, a 14% gain in Wisconsin and a 9% increase in Iowa. On a quarter-versus-quarter basis, Michigan reports a 5% increase, Indiana and Wisconsin each report a 2% rise, Illinois lists a 1% increase and Iowa reports a 1% decrease. The survey also found more Corn Belt bankers leaning toward a decline in farmland values during the fourth quarter -- only 4% anticipate a rise in farmland values, 21% anticipate a decrease in values while 75% foresaw stable farmland values during the fourth quarter.

The Kansas City Fed bank says nonirrigated cropland values rose 19% compared to a year earlier for the period ending Sept. 30. Irrigated cropland rose 21.5% and ranchland values saw an annual gain of 15%. On a quarterly basis, the value of irrigated cropland rose 0.9% in the third quarter versus the second quarter while nonirrigated cropland increased 2.8% and ranchland rose 2%. Kansas reported a 22.5% annual increase in the value of nonirrigated cropland, Missouri rose 27%, Nebraska gained 13%, Oklahoma rose 12% and the mountain states of Colorado, northern New Mexico and Wyoming gained 21%. Kansas listed a 17% rise in the value of ranchland, Missouri listed a 13% gain, Nebraska rose 19.5%, Oklahoma rose 8% and the Mountain States increased 6%.

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

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