Three surveys recently released by the Federal Reserve Banks of Chicago, Kansas City and Minneapolis put numbers on the weakness in land values seen the last three months of 2008. While prices eased lower during the fourth quarter, all areas reporting noted a rise in land values compared to 2007. But the action seen in the fourth quarter and noted since the turn of the calendar confirm a market that's flattened.
Here are the fourth-quarter figures reported by the banks. The Federal Reserve Bank of Chicago says values slipped by 4% across its district during the fourth quarter of 2008, but finished 5% higher on an annual basis. The Chicago fed bank serves northern Illinois, northern Indiana, Iowa, Michigan and the southern Wisconsin.
The Federal Reserve Bank of Minneapolis reports the value of non-irrigated cropland slid 4.4% during the fourth quarter but rose 12.2% when compared to 2007. Irrigated cropland eased 1.1%, finishing 7.8% higher on an annual basis. Ranchland slipped 0.6% during the quarter and closed the year 5.8% higher than a year earlier. The Minneapolis bank serves Minnesota, Montana, the Dakotas and northwestern Wisconsin.
The Federal Reserve Bank of Kansas City says the value of irrigated cropland eased 2.8% during the fourth quarter, but rose 7.1% for the year. Irrigated cropland slipped 1.1% during the fourth quarter but gained 10.9% for the year. Ranchland declined 1.7% in the fourth quarter but closed 2008 5.6% higher when compared to 2007. The Kansas City bank serves Colorado, Kansas, northwest Missouri, Nebraska, northern New Mexico, Oklahoma and Wyoming.
I cover these surveys in more detail, including individual state data, in LandOwner. If interested in a sample copy, just drop me an email at [email protected] or call me at 800-772-0023.