In no surprise, farmland values declined the first three months of this year, according to three reports from the Chicago, Kansas City and St. Louis Federal Reserve banks. The Chicago Fed bank, which serves the central Corn Belt, reports "good" farmland values slipped 1% during the first quarter of 2014, but are 1% higher compared to a year earlier. The St. Louis Fed bank, which serves the southern Corn Belt and mid-South, reports farmland values slipped 6% on a quarterly basis but are 7.5% higher on an annual basis. The Kansas City Bank, which serves the Central and Southern Plains along with western Missouri and the mountain states of Colorado, Wyoming and northern New Mexico, reports the value of dryland cropland slipped 1.4%, irrigated cropland rose 0.5% and rangeland increased 2.6% on a quarterly basis. On an annual basis, the bank reports dryland cropland is up 4.4%, irrigated cropland is 6.4% higher and rangeland is up 8.6%.
These swings in values is consistent with what we've been reporting in LandOwner -- that demand for land is generally weaker but it it quickly appears after a moderate setback in values. And that some areas which were impacted earlier by crop woes and plunging profit prospects in 2013, have stabilized.
On an annual basis Illinois is unchanged, Indiana is up 7%, Iowa is down 2%, Michigan is down 1% and Wisconsin is up 2%. On a quarterly basis, Illinois and Indiana are off 4%, Iowa is up 1%, Michigan is down 3% and Wisconsin is up 1%. In Kansas, dryland cropland is up 10.3%, irrigated is up 15.8% and rangeland is up 6.7% on an annual basis. In western Missouri, dryland is up 5.5% and pastureland is up 8.3%. In Nebraska, dryland is down 1.2%, irrigated is up 2.3% and rangeland is 9% higher on an annual basis. Oklahoma dryland crop is up 13.5%, irrigated up 13% and rangeland up 12.3% on an annual basis. The mountain states report dryland cropland up 7.8%, irrigated cropland up 5.3% and rangeland is up 8.3% on an annual basis. Quarterly comparisons are not reported.
We will have more details in the next issue of LandOwner newsletter.
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