Western Corn Belt farmland values continue to weaken, according to Farm Credit Services of America (FCSAmerica) and Frontier Farm Credit. The midyear appraisal update of benchmark farms by the two lenders indicate cropland values remain under pressure while pastureland values are stronger.
The Omaha-based FCSAmerica — the largest ag real estate lender in its four-state service region — updates farmland values on 64 benchmark farms every Jan. 1 and July 1. Joining the lender in that update this July 1 is Frontier Farm Credit — a Farm Credit System member based in Manhattan, Kan., serving more than 6,000 farmers in Kansas.
The midyear update shows values easing in both Iowa and Nebraska — both on a six-month basis as well as annual basis. The update indicates cropland values are down 4.6% in Iowa while pastureland is up 3.6%. The update indicates Nebraska cropland is down 3.8% but pastureland is up 3.3%.
Kansas values are holding steady as strong demand for pasture and ranchland lifts overall values. The breakdown indicates Kansas cropland is up 1.9% while pasture and ranchland is up 4.3%. That trend is evident in South Dakota as well, which shows an overall rise of 0.8% for the first six-months of 2015. The update indicates cropland values are down 1.1% in South Dakota while pasture and ranchland values are up 4.3%.
Wyoming with its wide expanse of ranchland is up 6.8% for the six month period and up 8% for the year. The update indicates Wyoming cropland is up 6.8% and ranchland is up 6.7%.
On a state-by-state basis, the update indicates of the 21 benchmark farms followed in Iowa, 2 increased in value over the past six months, 2 showed no change and 15 decreased in value by an average of 6.1%.
Kansas: Of the seven benchmark farms, four showed no change and the remaining three showed an increase in value.
Nebraska: Of the 18 benchmark farms, 5 farms increased in value while 2 showed no change. Eleven farms indicated a decline in value.
South Dakota: Of the 23 benchmark farms, 19 recorded an increase or no change in value while 4 showed a decline.
Wyoming’s two benchmark farms both reported gains.
The average decrease for all 71 benchmark farms included in the appraisal update was 1.4%.
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