Are land values going up in your state?

October 7, 2016 09:38 AM

Despite a fluctuating ag economy, land values in mid-America are holding across the board

By Dennis Badger, Vice President – Collateral Risk Management | Farm Credit Mid-America

Farm land values in the mid-America region continue to remain consistent, despite a challenging ag economy deeply affecting the country. In the 12-month time period between July 1, 2015 to June 30, 2016, the four-state region of Indiana, Ohio, Kentucky and Tennessee saw a collective average value increase of 0.18 percent.

The previous reporting period of July 1, 2014 to June 30, 2015 had a 2.2 percent increase in farm land values. A gentle, downward trend since then was expected after the land value hikes from 2010 through 2012 continue to force market corrections.



The 2016 Farm Credit Mid-America results affirm land values are starting to decline in response to lower commodity prices, but at a pace that is supportive of a soft landing in our markets. Kentucky and Tennessee are still experiencing increases in cropland values likely due to the recreational and urban expansion components in their markets. While Indiana experienced a decline in farm land values of approximately 6 percent, the overall average rate of change in our four-state territory experienced a minimal change of 0.2 percent, which is good news for the area.

Farm Credit Mid-America appraisers use a variety of factors to estimate changes in land values, including an ongoing farm sale analysis that compares sales and changes in trends at the county level. In addition to these components, appraisers identified properties that are reassessed annually and placed into 13 benchmark zones. Below is the state-by-state breakdown of how land values shifted from July 1, 2015 through June 30, 2016 across our four states:

Ohio had an average increase of 0.4 percent in farm land values across the state.

Indiana saw an average decrease in farm land values of 5.8 percent.

Tennessee saw an average increase of 3.7 percent in the state’s farm land values.

Kentucky saw an average increase in farm land values of 2.4 percent.

2017 Projected Land Values

In the next 12 months land values are projected to show nominal levels of change with no major fluctuations. Specifically, our four-state region expected to show an average decrease of 0.9 percent from 2016 to 2017, though this predicted drop should still be considered part of the natural market correction following 2010 to 2012.

Farm Credit is committed to being a reliable source of credit for customers in any economy. We encourage you to always make borrowing and buying decisions based not only on opportunities but also business needs.

For additional financial tips, insights and perspectives, visit Farm Credit Mid-America Insights.

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Spell Check

Saint Paris, OH
10/11/2016 05:00 AM

  That's funny because land values went down here.

Mitchell, SD
10/11/2016 08:45 AM

  This is almost too funny to read......I wonder if they are really looking at all land transactions and the "No sales" that are taking place at auctions. I strongly believe that some of the "BIG lenders in the USA".....mainly the FCS's and Rabo's of the world, are a little fearful of what could happen if anything other than a "Soft landing" takes place in the RE markets, (so they spin the story with the data they want to report?). Some of those firms went pretty deep into the dirt (loan to values) and are now shaking in their boots....maybe similar to their reaction in the 80's? First they get real aggressive in the field, cant say "NO" to any deal, doing tons of refinancing, based on rising RE values, and $5-$6/bu corn, etc. Then lets build lots of NEW, Expensive buildings across the country, and now the mergers of more and more FCS Associations are being announced........similar track record to the 80's. It will be interesting to see how the story plays out!!

allan peterson
dallas, TX
10/10/2016 09:08 AM

  I am a landowner and native of North Dakota---I rent my land to farmers/ranchers who are not making any money. I will be reducing rents---how can land values not go down?? Farmers/land owners are typically stubborn when it comes to their land values----but reality of sinking corn, wheat, cattle and other commodity prices will certainly dictate lower land prices. Don't sell if you don't like that fact but its inevitable.


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