LAND VALUE REPORTS
Kansas, Oklahoma and Texas Panhandle
The land market throughout the High Plains continues a
strong drive into 2013 despite persistent dry weather and springtime freezes
that have damaged growing wheat across a wide area. According to Monty Meusch,
Farmers National Company area sales manager, land values throughout Kansas,
Oklahoma and Texas do not show any down turn despite weather challenges across
One major change in this region's market is the impact of
an inventory shortage that is a direct result of a strong sell-off of land late
"Forecasted tax law shifts and increasing prices to record
levels spurred on this high level of sales activity which has led to a slowdown
so far this year," said Meusch. "Despite the slowdown, values are still holding
Meusch projects a continued low number of listings coming
available on the market into the next quarter. A projected large corn crop
could impact values later in the year, as well.
Sales prices in Kansas of top quality land range from
$3,800 to $6,000 per acre depending on location. Prices for irrigated high
quality cropland in the Texas Panhandle are between $3,000 and $4,000 per acre.
Lansford, Area Vice President, Kansas,
Missouri, Oklahoma, and Texas • (817) 884-4414 or MLansford@FarmersNational.com
Iowa and Minnesota
Demand for high quality farmland continues to be very
strong in the North Central Region including Iowa, Missouri, Minnesota and
South Dakota, according to Sam Kain, area sales manager for Farmers National
Company in Iowa and Minnesota. While demand from both investors and farmer
operators is high, farmers are the ones paying top prices and targeting premium
pieces of land.
Auction numbers in this region continue to be strong,
prompting sellers to net top sales prices, according to Kain. "Continued low
supplies of land in this area have kept the market strong," said Kain. "Low
interest rates have also helped drive the market. Without low rates, current
commodity prices do not justify current land values. Any jump in rates could
lead to a sales slowdown, but its strength as an investment is keeping activity
healthy." In Iowa, top quality land is selling at more than $12,500 per acre,
Minnesota values are reaching $9,500 per acre, and values in eastern South
Dakota have reached $8,000 plus in many areas.
Kain, ALC, GRI, ABRM, Area Sales Manager for Iowa, Minnesota, Missouri,
North Dakota, South Dakota •
1-800-798-4509 or SKain@FarmersNational.com
North Dakota and Northwest
Buyers in the area covering North Dakota, eastern South
Dakota and western Minnesota continue to seek out average to high quality land
for purchase, according to Terry Longtin, area sales manager. The first four
months of 2013 show land values and rent leveling off. However, the value
numbers are still strong after 30 to 40 percent increases during 2012.
"We have experienced improved crop yields in the last
few years, mainly due to improved crop varieties for this region, lead by corn,
soybeans and sugar beets," said Longtin. "This, along with last year's net
profits, has the demand for land outpacing supply."
Most land is being sold to farm owner-operators, but
investors are still seeking farmland due to the net returns in the region,
according to Longtin.
Average to good quality land in the area is selling in the
$4,000 to $7,000 range per acre, while excellent land is in the $7,000 to
$9,000 per acre range. Top land in South Dakota is pulling up to $8,000 per
acre, while North Dakota is coming in at $8,500 and Minnesota at $9,500.
Longtin, AFM, Area Sales Manager for North Dakota and Northwest Minnesota • (701) 780-2828 or Tlongtin@FarmersNational.com
Colorado, Kansas, South Dakota,
Central/Western Nebraska and Wyoming
After experiencing double-digit annual increases of up to
25 to 30 percent in land values over the past six years, Farmers National
Company is currently seeing moderate to steady growth as land prices plateau
throughout mid-year 2013, says JD Maxson, area sales manager for Farmers
National Company in Colorado, Kansas, South Dakota, central/western Nebraska
and Wyoming. While demand for high quality cropland and commodity prices still
remain the motivating factors driving values; for the most part, land prices
have stabilized throughout the first quarter of 2013. "Rising land values have
adjusted as a result of an increase in favorable returns on alternative
investments," said Maxson. "Consumer confidence is a reflection of the stock
market's recent positive upswing, so they are investigating other investments
Maxson anticipates a possible transition of investor
capital away from the ag sector if returns in the financial markets remain
strong. Moderate increases in land prices throughout 2013 are likely still due
to the pressure of current commodity prices.
"Past history shows land prices have a tendency to parallel
the market's highs and lows," said Maxson. "Recent news of planned ethanol
plants closing in the area will likely impact commodity prices, as demand
declines for ethanol-based grains. Corn planting was delayed due to late spring
snow storms and below average ground temperatures, leaving a somewhat negative
impact on yields and production." Prices in these regions are ranging from
$4,000 to $12,000 per acre for high quality tillable acres, with location,
soils and topography dictating price.
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 and Ohio
Quality farmland in the East Central region continues to
see moderate to steady land values, with increases near four percent over the
past six months, according to Roger Hayworth, area sales manager for Farmers
National Company in Illinois, Indiana, Ohio, Michigan, eastern Kentucky, and
"Low supply, prompted by strong sales activity late in
2012, is causing prices to rise as demand has stayed strong into this year,"
said Hayworth. "When a unit of land is placed on the market, it is sought after
with aggression - particularly high quality parcels."
Both investors and farmer-owners are buying land, but
perhaps a bit more cautiously, according to Hayworth. Several positive income
years have put farmers in a stronger position than years past to be able to
increase the size or their operations. "Many continue to evaluate their
personal and business situations before buying, but are making the move when an
Despite fewer sales, Hayworth says he is seeing larger
parcels of land being sold in individual transactions as we move further into
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 $10,500 per acre, and Ohio, which has reached $8,200 per
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 and Tennessee
Activity in the Mid-South Region remains brisk, fueled by
low supply and continued high demand. Once properties hit the market, they are
"Prices are still going up and inventory continues to be
tight," said Keith Morris, area sales manager for Farmers National Company in
Tennessee, Mississippi, Arkansas, Alabama, western Kentucky and Louisiana.
"Buyers, both investors and farmers, are looking for good farms and don't mind
paying a little more for quality farmland."
Prices for top farmland are averaging $4,250 per acre in
Arkansas, $3,800 per acre inTennessee and $4,250 per acre in Mississippi.
have any questions, please contact us at 1-800-346-2650.
More buyers looking for good quality farmland to buy or
lease is not just a common phenomenon in the Midwest. Land buyers in the state
of Washington continue to outnumber those who are willing to sell, creating
strong demand and increasing prices for top quality properties, according to
Flo Sayre, real estate broker for Farmers National Company in Pasco, Washington.
"The market is good for all land classes, from irrigated
row crops and permanent plantings, to dry land wheat farms," said Sayre. "The
recent problems with a GMO wheat strain are creating some concerns about land
values for wheat acres, but so far the market has not been affected."
Farm operators adding to their
holdings and investors make up the buy side of this market. Non-operating
landowners are the primary sellers today as land transitions between
generations and ownership structures become complicated.
The volatile weather that has
affected much of the crop production areas in the central U.S. has also hit
Washington, leading to a fruit crop that is down in volume this year but still
at better-than-normal quality, according to Sayre. The first alfalfa cutting
was damaged by spring rains, creating substantial demand for the second cutting
with prices of $250 to $300 per ton being common.
Cash rents in general for the area
have increased from 10 percent to 20 percent year over year. Younger farm
operators coming back to their family operations are driving this market in
part as they compete aggressively for more acres said Sayre. Root crops rent
from $650 to $1,000 per acre, while irrigated row cropland rents for $400 to
$600 per acre, despite an increase in power and water costs of five percent to
eight percent this spring. Most of the dry land wheat is still operated on a
share lease of some sort with some cash rents.
Flo Sayre, ALC, Real
Estate Broker for the Columbia Basin and Eastern Washington state • (509) 544-8944 or Fsayre@FarmersNational.com