Drought in Texas is beginning to have an impact on the value of farm and ranchland as gains in the value of cropland slow and the value of ranchland slips compared to a year earlier. That's according to a survey of the state's agricultural bankers conducted by the Federal Reserve Bank of Dallas. The bank said dryland cropland values rose 5.5% during the second quarter compared to a year earlier. Irrigated cropland is 11% higher than a year earlier. However, the value of Texas ranchland eased 0.9% compared to a year earlier.
On a quarter-versus-quarter basis, dryland cropland rose 2.9%, irrigated cropland rose 2.2% and ranchland slipped 2.3%.
Expected impacts from the drought had banker expectations for farm and ranch land values going forward thinking slightly less positive than in recent reports. Less than 10% of survey respondents anticipate an increase in values during the third quarter.
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