Monday, August 8, 2016

New USDA Farmland Price Information, Graphics, and Maps August 2016

The annual USDA farmland values survey report has been released this August 2016.

It reports that the average farm real estate value across the entire United States is $3,010 per acre. That average includes a very diverse set of farms, land, pastures, and crop acres.

In the corn belt region the average value reported for 2016 is $6,290 per acre.

The U.S. cropland value decreased by $40 per acre or 1.0 percent, to $4,090 per acre, from 2015.

According to the USDA NASS, Iowa cropland values dropped 2 percent, to an average of $8,000 per acre.

And, in Minnesota, cropland values fell 1 percent, to an average of $4,750 per acre.

In this commodity deflationary period, the USDA NASS also reports that fuel expenses for the agriculture sector dropped more than 25% last year.

Along with lower commodity prices, agriculture expenditures declined in all U.S. regions, but the Midwest continues to have the highest total.

Next are some helpful maps which you can use to find out how the averages played out in your own state this past year.

This first map shows the average farmland acreage values, and the percent change from 2015.

click to enlarge

This second map show the average cropland acreage values, with the percent change from 2015.

click to enlarge

This third map shows the average pastureland value per acre along with the percent change from 2015.

click to enlarge

Quote from the report:
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,010 per acre for 2016, down $10 per acre (0.3 percent) from 2015 values. Regional changes in the average value of farm real estate ranged from a 3.3 percent increase in the Pacific region to 4.3 percent decrease in the Northern Plains region. The highest farm real estate values were in the Corn Belt region at $6,290 per acre. The Mountain region had the lowest farm real estate value at $1,110 per acre.

The United States cropland value decreased by $40 per acre (1.0 percent) to $4,090 per acre from the previous year. In the Southeast region, the average cropland value increased 4.0 percent from the previous year. However, in the Northern Plains region, cropland values decreased by 5.4 percent.

The United States pasture value remained constant at $1,330 per acre. The Delta region had the highest increase of 3.9 percent from 2015. The Northeast region had the highest decrease in pasture land at 2.6 percent.

As a final comment, unfortunately, in general, farmland rents have not come down enough to reflect the current deflationary reality, contributing to today's Ag-sector renter-producer financial stresses.

The report is found here:

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