Texas farmland values rose 1% to 4% on an annual basis, according to the quarterly survey of Texas agricultural bankers conducted by the Federal Reserve Bank of Dallas. The bank reports the value of dryland cropland rose 4.2% for the year ending Sept. 1 while the value of irrigated cropland rose 0.8% and the value of ranchland increased 1.6%. The bank pegs the average value of an acre of Texas dryland cropland at $1,725, an acre of Texas irrigated cropland at $1,976 and an acre of Texas ranchland at $1,902.
The Dallas Fed bank also serves northern New Mexico and southern Louisiana bankers. When their survey results are included, the value of district dryland cropland rose 4.2%, district irrigated cropland increased 2.7% and district ranchland gained 1.5%.
“Bankers responding to the third-quarter survey reported that after their regions received beneficial rains in the spring, limited rainfall and a return of drought conditions in some areas in the third quarter damped outlooks,” the bank says. “Low commodity prices have created profitability concerns, and respondents expect price pressures will result in lower farm incomes. Bankers in a couple of regions noted that crops and pastures were in good condition after rain earlier in the year and that crop yields are average to above average.”
On a quarterly basis, the bank says, “district dryland was the only land type to see increased values this quarter. Real dryland values were up 1% over last quarter, while real land values decreased for irrigated cropland (3%) and ranchland (7 %).”
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