Southern Corn Belt/Mid-South See 4% Rise in Farm and Ranchland Values
Feb 28, 2013
The value of southern Corn Belt and Mid-South farm and ranchland rose by 4% during the final quarter of 2012, states a recent report from the Federal Reserve Bank of St. Louis. That quarter-over-quarter gain follows a 5% rise posted during the third quarter of 2012.
The St. Louis Fed bank joined other regional federal reserve banks in 2012 by issuing quarterly updates on agricultural credit conditions and farmland banks. In just its third report, the bank indicates the value of district quality farmland rose 7% from the previous quarter while the value of district ranchland rose 2%. The bank does not yet have the data to issue year-versus year comparisons.
The St Louis Fed bank district is broken into four regions:
St. Louis region -- the southern third of Illinois plus the eastern two-thirds of Missouri: The St. Louis region reports an average value of $6,340 an acre for quality farmland and an average cash rent of $214 an acre. It lists the average value of ranchland in its region at $2,728 an acre with an average cash rent of $71 an acre.
Little Rock region --the western two-thirds of Arkansas: The region pegs the average value of quality farmland at $2,557 an acre with an average cash rent of $91 an acre. Ranchland is listed at an average of $2,150 an acre with an average cash rent of $51 an acre.
Louisville region -- the southern third of Indiana and western half of Kentucky: The average value of quality farmland is reported at $5,000 an acre with cash rent at $202 an acre on average. Ranchland is listed at an average of $2,050 an acre with average cash rent at $82 an acres.
Memphis region --the boot heel of Missouri, western third of Tennessee and northern half of Mississippi: The average value of quality farmland is listed at $3,194 an acre with average cash rent at $139. Ranchland is reported at $1,894 an acre with average cash rent at $60 an acre.
For the district as a whole, the average value of an acre of quality farmland is $5,230 an acre with cash rent at an average of $187 an acre. the district-wide average of ranchland is $2,396 an acre with average cash rent at $67 an acre.
Click here for the full report.
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