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.
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