The value of Texas cropland rose 3% to 13% versus a year earlier with irrigated cropland posting the strongest gain, according to a survey conducted by the Federal Reserve Bank of Dallas. The survey of ag bankers found the value of irrigated cropland rose 4% compared the second quarter of 2012 and increased nearly 13% when compared to the previous year. Non-irrigated cropland rose, but not at as strong a pace. Dryland cropland gained nearly 2% versus the previous quarter and rose slight more than 3% through the third quarter of 2012 when compared to a year earlier.
The value of ranchland was essentially unchanged versus a year earlier. The survey pegged the annual increase at the end of the third quarter of 2012 at a narrow 0.7% while the change versus the second quarter of 2012 was a decline of 1.3%.
The majority of survey respondents expect land values will hold steady through the fourth quarter of 2012 while 18% anticipate an increase in farmland values. That's the highest percentage share to anticipate a rise during the upcoming quarter since early 2011, the bank said.
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