Now THAT was a surprise. Contrary to what we've been chronicalling and what university and private surveys have been telling us, the value of U.S. farmland rose this year compared to 2014. The USDA today reported the value of U.S. farm real estate, the value of all farmland and buildings, rose 2.4% in 2015 compared to last year. The agency pegs the average value of farm real estate at $3.020 an acre. The Southern Plains region saw the sharplest increase at 6.1% while the Corn Belt region marked a tepid 0.3% decline. The highest farm real estate values are in the Corn Belt region at $6,350 an acre. The lowest average farm real estate values are in the Mountain region at $1,100 an acre.
The value of U.S. cropland rose slightly in 2015 when compared to 2014, USDA says. It says the average value of cropland increased a slim 0.7% to a national average $4,130 an acre. The Southern Plains saw the sharpest increase -- up 9.2% while the Corn Belt region registered a decline of 2.3% from 2014.
Pasture values increased to $1,330 per acre, a 2.3% rise versus 2014. The Lake States posted the highest percentage increase with a 15.4% gain while the Southeast region indicated pasture land values remained unchanged.
In addition, USDA also indicated the U.S. average cash rent rose 2% to an average rate of $144 an acre. Iowa reported the second-highest average cash rent at $250 an acre. California listed the highest cash rent at $329 an acre.
Looking at a few states
Iowa's average farm real estate value declined 5.9% to an average of $8,000 an acre. Illinois reports a slight 0.3% slip to $7,500 an acre. Indiana lists an increase of 2.9% to an average value of $7,150 an acre. Ohio reports a 3.6% gain to an average of $5,750 an acre. Missouri lists an increase of 8.1% to an average of $3,350 an acre. Minnesota lists a 1.1% decline to $4,700 an acre. Kansas: a 1% decline to $2,030 an acre. Nebraska: a 2.2% decrease to $3,050 an acre. South Dakota: a 12.1% gain to $2,320 an acre. North Dakota, a 5.5% increase to $1,920 an acre.
Illinois: $228 an acre. Indiana: $197 an acre. Ohio: $150 an acre. Missouri: $132 an acre. Minnesota: $181. Nebraska: $206.
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