Mike Walsten

The value of an average acre of Iowa farmland is projected to rise 13.6% in 2013, according to a survey of land professionals attending the 86th annual Soil Management and Land Valuation Conference at Iowa State University Wednesday. Survey respondents said they expect the value of an acre of Iowa farmland will reach $9,425 an acre by November 1, 2013. That compares to an average of $8,296 an acre reported by the 2012 Iowa Land Value Survey conducted by Dr. Mike Duffy, Iowa State University economics professor and extension farm management economist who conducts both the annual survey and the annual conference.

The university has conducted the attendee survey in conjunction with the conference since 1964. The survey's track record has proven reasonably accurate with the May survey undershooting the November 1 figure in years of strong gains and overstating the November 1 figure in years of weakness. Last year, the conference survey projected an increase in Iowa land values by November 1 of nearly 22%. Conference attendees projected a November 1 average value of $8,164 an acre. The actual November 1 figure, as noted above, was $8,296 an acre -- a 24% annual increase.

Conference attendees also honored Dr. Duffy for his leadership of the annual conference as he will retire January 1, 2014.

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" 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.