Farm and ranchland values in the Central and Southern Plains rose during the first quarter of 2010, according to a survey of agricultural bankers conducted by the Federal Reserve Bank of Kansas City. The survey found non-irrigated cropland rose 2.8%, irrigated cropland rose 2.5% and ranchland rose 1.6% versus values of a year earlier. The Kansas City bank serves Kansas, northwest Missouri, Nebraska, Oklahoma and the mountain states of Colorado, Wyoming and northern New Mexico.
Led by Nebraska, ranchland values posted their strongest gain in more than a year as income prospects for the livestock sector improved, the bank reported. The survey indicated demand for cropland was strong during the quarter, driven primarily by farmer demand.
Most survey respondents indicated they expected farmland values to hold stready during the second quarter. Nine percent of survey respondents, mostly from Nebraska, said they expected farmland values would rise during the second quarter. Five percent, mostly from Oklahoma, said the expected farmland values would decline. Indeed, Oklahoma reported a decline of 0.8% in the value of non-irragated cropland and 0.7% in the value of ranchland compared to a year ago.
The mountain states of Colorado, Wyoming and northern New Mexico reported a decrease of 2.9% in the value of non-irrigated cropland and a decline of 1.4% in the value of irrigated cropland versus a year earlier. Nebraska reported gains of 6.2%, 4.6% and 6.1% respectively in the value of non-irrigated cropland, irrigated cropland and ranchland.
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