Farmland values held steady during the third quarter versus the previous quarter across the Central and Southern Plains, according to ag bankers surveyed by the Federal Reserve Bank of Kansas City. The Kansas City Fed serves bankers in Kansas, northwest Missouri, Nebraska, Oklahoma, and the mountain states of Colorado, northern New Mexico and Wyoming.
Compared to the previous quarter, the value of non-irrigated cropland remained flat while the value of irrigated cropland slipped less than 1%. Ranchland values were 1% lower when compared to the previous quarter, due mostly to declines noted in Kansas and Nebraska. The value of Oklahoma ranchland actually rose in the third quarter compared to the second quarter as drought conditions within the state eased.
The value of ranch and cropland has slipped when compared to values of a year earlier, the survey states. It shows the value of non-irrigated cropland has declined 1.7% while irrigated cropland is down 3%. Ranchland values have fallen 4.2% on an annual basis. There are exceptions, however, as the survey indicates the value of non-irrigated cropland in Kansas rose 2.3% during the third quarter when compared to values a year earlier. Bankers in Northwest Missouri indicated values are up a slight 0.2% in the third quarter compared to values the previous year. Non-irrigated cropland values are down 1.6% versus a year earlier in Oklahoma, down 4.8% in Nebraska versus the previous year and down 5.5% in the Mountain States of Colorado, northern New Mexico and Wyoming.
Survey respondents reported a limited number of sales have occured during the quarter. A majority of the bankers responding to the survey said they expect farmland values to hold steady over the next three months.
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