LAND VALUE REPORTS
Kansas and Oklahoma
The market for high quality
cropland remains steady throughout the High Plains with stronger values in the
western part of the region. Overall area values are holding steady with some
slight reductions from values 18 to 24 months ago, according to Brock Thurman,
AFM, Farmers National Company area vice president, Kiowa, Kan.
"Prices are still good for those high quality properties,
with reductions being seen on lower quality land," said Thurman. "Values within
the south central region are definitely tied to the specific location and
quality of the farmland. Quality land is still selling at record prices, but we
aren't necessarily seeing measurable increases in value overall."
Auction activity was busy during April and May in these
states, still standing out as the method of choice for selling farm properties.
"We definitely saw higher prices on land at auctions, versus private treaty
sales," said Thurman.
Some land sales are seeing higher prices if the property is
tied to mineral rights. Active producing properties can bring higher prices and
impact transactions based on the land selling with the mineral rights or not.
Positive crop production levels or profitability boosted by crop insurance
receipts are also keeping values at a fairly strong point.
"It's important to keep farms profitable in this region to
keep land values steady," said Thurman. "Drought in the area has been
challenging. If commodity prices stay high, farms will remain economically
Looking ahead for this region, Thurman predicts cropland
will remain steady or see potential reductions in value based on market
factors. Values will remain tied to land quality and location.
Prices for irrigated high quality cropland in the area are
variable, but range between $3,500 and $6,000 per acre, while the range for
non-irrigated land is $2,000 to $4,000.
Thurman, AFM, Area Vice President/Commodity
Marketing Specialist, Kansas and Oklahoma • (620)
825-4320 or BThurman@FarmersNational.com
Iowa and Minnesota
Selective demand for high quality
farmland continues as prices have leveled somewhat in the north central region,
including Iowa, Missouri, Minnesota and South Dakota, according to Sam Kain,
national sales manager for Farmers National Company, West Des Moines, Iowa.
"Buyers are definitely choosy right now, but will pay for
quality land," said Kain. "We just aren't seeing the frenzy and competition for
properties we did last year. Whether or not we see a 10% or greater drop
in values is yet to be seen because supply of available properties for sale is
low. We still consider this a good land market based on historic trends."
The land market in Iowa has been fairly strong with values
holding, compared to some weakness in Minnesota due to cold and wet ground
conditions impacting production.
Economic factors contributing to current land values in
this area include slow commodity trading. Property price levels to date have
not been impacted by the ethanol mandate.
In Iowa, top quality land is selling at more than $12,000
per acre, while Minnesota values are reaching $9,000 per acre.
Kain, ALC, GRI, ABRM, Assistant Vice President of Real Estate and National
Sales Manager for Iowa, Minnesota, Missouri, North Dakota, South Dakota • 1-800-798-4509 or SKain@FarmersNational.com
North Dakota, Northern South Dakota and Western Minnesota
Auction activity for land sales in
North Dakota, eastern South Dakota and western Minnesota has tightened compared
to 2013 with more transactions going to private listings, according to Terry
Longtin, Farmers National Company area vice president and area sales manager,
Grand Forks, N.D. While there are still plenty of buyers, sales levels have
weakened a bit overall, with levels coming in at 10 to15 percent below the high
values of 2012.
"I feel we are at a stabilizing place in the market," said
Longtin. "For people wanting to sell prices are still excellent, even if they
are slightly down from a year ago. Our regional ag economy is a bit weaker than
other regions due to lower commodity prices, high basis due to railroad
transportation issues and reduced production in 2013. Overall though sellers
are still seeing historically high price levels."
Longtin predicts that commodity prices need to rise about
10 percent to continue to hold current land values. "If production in our
region is low again this year, values could be impacted and buyer demand may
lag. In contrast if crop prices are good farmland prices are likely to rebound
by 10 percent."
An excessively cold winter in the region affected
transportation which is impacting current commodity prices lower due to delays,
"The outlook for the new crop is positive, as compared to
last year however, we are in a late planting year and are currently switching
corn acres to soybeans or wheat, as of late May" said Longtin. "Right now
warehouses are full with the last year's crop, which needs to be moved to
market to make way for upcoming production."
Average to good quality land in the area is selling in the
$5,000 to $6,000 range per acre, while excellent land is in the $6,000 to
$9,000 per acre range. Top quality land in South Dakota is pulling up to $8,100
per acre, while North Dakota is coming in at $7,200 and Minnesota at $9,000.
Longtin, AFM, Vice President - Northern Area Manager for North Dakota,
northeastern South Dakota and western Minnesota • (701) 780-2828 or Tlongtin@FarmersNational.com
Colorado, South Dakota, Nebraska and Wyoming
Since January 2014, the wide region
covering Colorado, western South Dakota, Nebraska and Wyoming has seen a high
level, of land sales activity. While
land values have not increased significantly, they are still at a steady high
level said JD Maxson, area sales manager for Farmers National Company, North
"Nebraska and South Dakota have enjoyed double digit
increases in land value appreciation since 2006," said Maxson. "Any slight
declines in land prices going forward could be expected, but definitely not
devastating, to producers and investors alike based on historical levels."
Land auction activity across Nebraska and South Dakota has
produced record grazing and pasture grass prices, according to Maxson. "We had
two individual tracts of grass sell for $3,750 and $4,050 per acre, showing
strong demand." With livestock numbers still down from the 2013 Atlas Blizzard
in South Dakota and northern Nebraska, high quality grassland/grazing pasture
is in high demand among cattlemen and producers trying to rebuild their herds.
In addition, farmers continue to accumulate and break grass acres for cropland,
Some buyers are drawn to purchase based on location of land
and proximity to farm operations. These scenarios have contributed to the
positive upturn in grass acre prices.
Moving into the last half of 2014, record exports in 2013
will have global impact, according to Maxson. "The continued export of U.S.
grains will have a tendency to support a stabilized commodity market and help
boost ag profitability," he said.
Maxson reports that low, average and medium quality ground
has leveled off as commodity prices adjust to current conditions.
Prices in these regions are ranging from $4,500 to $12,000
per acre for high quality tillable acres, with location, soils and topography
dictating price. The range varies from west to east as well as by water
availability and type of irrigation. There is a wide range of land values per
acre depending on quality and if irrigated.
Maxson, Area Sales Manager for western Nebraska, portions of northwest
Kansas, eastern Colorado, eastern Wyoming, and southwest South Dakota • (308) 660-2100 or JMaxson@FarmersNational.com
Illinois, Indiana, Ohio, Southern Michigan, Eastern
Kentucky and Eastern Missouri
in the east central region continues to bring strong prices in most
territories, supplies are limited- with demand steady, according to Roger
Hayworth, Area Sales Manager for Farmers National Company, Lafayette, Ind.
While quality land still leads demand, regionally there have been
signs/indicators of a slight market correction as values have dropped on some
property types two to four percent in general.
"This region had good sales activity into
early March with quite a few land auctions and good numbers," said Hayworth.
"However, sales volume has flattened in the last month reducing the number of
transactions. Buyers overall are taking a conservative approach in the
marketplace. Levels are down from 2013, with interest rates beginning to rise
and commodity prices dropping, but nothing substantial."
Buyers will continue to watch the economic environment and its impact on values
when deciding if and when to purchase land, according to Hayworth.
Additionally, potential sellers may put land on the market if they feel values
are starting to peak. "Rising interest rates could be a concern to the overall
market values, as with crop production volumes later in the year" Hayworth
said. "If the rise is gradual the ag market will adapt, but a sharp jump could
have a deeper effect."
Top prices in the region can be seen in Illinois at $12,500 per acre on average
for high quality land. These levels are followed by Indiana showing values up
to $10,000 per acre, and Ohio, which is at $8,000 per acre.
Roger Hayworth, Area Sales Manager
for Ohio, Indiana, Illinois, Michigan, eastern Kentucky, and eastern Missouri • 1-888-673-4919 or RHayworth@FarmersNational.com
Arkansas, Mississippi, Missouri and Texas
Activity in the southern region
overall remains brisk, fueled by low supply of quality land for sale and
continued high demand. Year end figures for 2013 in Texas indicate an
overall price increase of nearly 10% over 2012 prices. The Texas
statewide, size adjusted average price was $2,160 per acre. Quality land for
sale in all classes is moving quickly, said Mike Lansford, Farmers National
Company area vice president for the southern region, Fort Worth, Texas.
Overall, Texas has seen an increase in land sale activity
and a slight increase in land values in the past year, said Lansford. The wide
variety of geographic regions in the state has led to some variance. The
prolonged drought across much of Texas and the Southwest continues to be the
strongest deterrent for the land market.
"We anticipate land values to increase 5 to 7 percent on
average across the state in 2014," said Lansford. "Quality is still king no
matter what the land classification."
Buyers for productive farms are still available. Prices for
top farm land are averaging $5,000 per acre in Arkansas, $3,600 per acre in
Tennessee, $3,500 per acre in Texas and $5,000 per acre in Mississippi.
Mike Lansford, Vice President -
Southern Area Manager of the southwest Area including Arkansas, Mississippi,
Missouri and Texas •
817-884-4414 or MLansford@FarmersNational.com
land buyers continue to outnumber those who are willing to sell, creating a continued
demand keeping prices strong for top quality properties, according to Flo
Sayre, real estate broker for Farmers National Company in Pasco, Wash.
"The market remains good for all land
classes in this area," said Sayre.
Farm operators adding to their
holdings and investors make up the buy side of the land market. Sales overall
are still strong and auctions are driving prices.
Irrigated land in the area is currently
averaging $7,850 per acre. Non-irrigated cropland is currently seeing prices
near $1,300 per acre average for all types of farms, according to Sayre. She
noted that land in the eastern Palouse area is bringing prices as high as $3,500
per acre at auction. Prime farmlands in the Columbia Basin region are bringing
prices at or above $10,000 per acre.
Flo Sayre, ALC, Real
Estate Broker for the Columbia Basin and Eastern Washington state • (509) 544-8944 or Fsayre@FarmersNational.com