LAND VALUE REPORTS
Kansas and Oklahoma
The land market for high quality
cropland remains strong throughout the High Plains, however values have tapered
off slightly with reductions of 8 to 10 percent in some cases, according to
Brock Thurman, AFM, Farmers National Company area vice president, Kiowa, Kan.
"Drought challenges have subsided, which is helping to
stabilize any further reduction in values," said Thurman. "Trends in the south
central region are mirroring national trends overall, with comparable
Looking into 2014 for this region, Thurman predicts
cropland will remain steady or see potential reductions of 10 percent in value.
Current auction levels remain extremely strong and are forecast to stay at a
similar level into early 2014.
Prices for irrigated high quality cropland in the area are
variable but range between $4,000 and $6,000 per acre, while the range for
non-irrigated land is $3,000 to $6,000.
Thurman, AFM, Area Vice President/Commodity
Marketing Specialist, Kansas and Oklahoma • (620)
825-4320 or BThurman@FarmersNational.com
Iowa and Minnesota
Demand for high quality farmland continues
but 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, Des Moines, Iowa.
"Cautious and selective buyers are still on the lookout for
quality land, and willing to pay top dollar when they find it," said Kain.
Land prices moving into 2014 will likely be impacted by the
looming ethanol mandate, which could drop values based on commodity prices and
the demand for land to support livestock in this area which could boost values.
"It's a real balancing act as we move forward," said Kain.
"Values are still relatively strong, but market factors could pull them either
Auction activity in 2013 was extremely high in this region,
according to Farmers National Company numbers. The company's national auction
transactions reached 337 in the 2012-2013 fiscal year, while the Iowa market
alone saw 120 auctions in 2013. The majority of purchases are going to farmers,
but investors seem to be stepping back into the marketplace.
In Iowa, top quality land is selling at more than $12,000
per acre, Minnesota values are reaching $10,000 per acre, and values in eastern
South Dakota have reached more than $9,000 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, Northern South Dakota and Western Minnesota
Buyers in the area covering North
Dakota, northern South Dakota and western Minnesota continue to seek out
average to high quality land for purchase, according to Terry Longtin, Farmers
National Company area vice president and area sales manager, Grand Forks, N.D.
Sales levels remain fairly steady and have leveled slightly as compared to last
year at this time.
While demand in this area remains fairly strong, there are
pockets of decline close to 10 percent, according to Longtin. Overall sellers
are still happy with price levels which remain historically high.
Decline in profitability for sugar beet operations is
fueling some reduction in cash flow for farmers in this area. While this is
taking some potential buyers out of the market, Longtin forecasts land values
will hold in the region.
"Sugar beets income is down about 40 percent and growers
lost quite a bit of money last year, which is putting some pressure on the
market," said Longtin.
Transaction levels should maintain near or at current
levels into 2014, according to Longtin. However, the auction transaction
numbers are projected to slide downward as privately negotiated sales are
beginning to make a strong comeback.
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 $8,000 to
$9,000 per acre range. Top land in South Dakota is pulling up to $9,000 per
acre, while North Dakota is coming in at $8,000 and Minnesota at $10,000.
Longtin, AFM, Area Sales Manager for North Dakota, northeastern South
Dakota and western Minnesota • (701) 780-2828 or Tlongtin@FarmersNational.com
Colorado, South Dakota, Nebraska and Wyoming
High quality land is still in
strong demand for the wide region covering Colorado, South Dakota, Nebraska and
Wyoming. While values have not increased significantly, they are still at a
steady high level says JD Maxson, area sales manager for Farmers National
Company, North Platte, Neb.
While demand from both investors and farmer owner/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 Maxson.
"Farmers are buying land while we are seeing a trend here
of investors going elsewhere," said Maxson. "Some investors are just reluctant
to pay the higher prices they had in the past. Continued lower interest rates
are still helping to keep sales activity high. However, commodity prices and
the stock market's positive performance are impacting land activity."
Maxson reports that prices overall are plateauing for high
quality land, and average to medium ground is not peaking investor interest.
The recent drought in Texas has been a major factor in
driving grazing land prices up in Nebraska/South Dakota, as ranchers were
relocating herds to these regions. As herds are being moved back south,
grassland prices will likely adjust.
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.
Farmland in Eastern Nebraska is quite varied ranging from
top quality cropland, to mixed use properties to pasture farms. Buyers are being more cautious when
purchasing farmland as they look for good quality land at a good price, Average to below type farms are not
being sought out by buyers and prices have slipped off the recent highs that
have been occurred in the marketplace. Good quality farms have also seen a decline from the recent
strong escalation in prices that has been happening over the past seven years. Therefore, there is a wide range of
land values from $4,500 per acre to $10,000 per acre depending on quality and
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
Quality farmland in the East
Central region continues to see moderate to steady land values, as supplies are
still limited and demand strong, according to Roger Hayworth, area sales
manager for Farmers National Company, Lafayette, Ind. This region has seen a
recent flurry of activity heading into 2014, tempered by some conservative
trends as buyers feel a softening of the market.
"As we move into mid-year i feel we will see activity being
stable to slightly lower," said Hayworth. "The first quarter will be very
active based on our year-end interest. This could subside later this year if
interest rates rise and commodity prices weaken."
With commodity market prices dropping, there has been some
resistance at auctions. However, sales still remain steady with active auction
buyers, said Hayworth."There is still pent-up demand for quality land within
the cash-rich farming community."
Larger parcels/tracts of land are coming on the market,
with sizes in the East Central region ranging from 350 to 900 acres or more.
Owner operators are seeking out these sections to expand farms.
Top prices in the region can be seen in Illinois at $13,000
per acre on average for high quality land. These levels are followed by Indiana
showing values up to $11,100 per acre, and Ohio, which has reached $8,400 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, Missouri and Texas
Activity in the Southern region
overall remains brisk, fueled by low supply and continued high demand that was
seen in 2013. Quality land for sale is moving quickly says Mike Lansford,
Farmers National Company area vice president for the southern region, Fort
Worth, Texas. However, some areas within the region, such as central/southern
Arkansas and central Mississippi have seen more stable activity and values.
Overall, Texas has seen an increase in land sale activity
and a slight increase in land values over the past year, said Lansford. The
wide variety of geographic regions in the state has led to some variance.
Recovery from the drought has minimized the negative impact on values in the
state to some extent
"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 farmland 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, Area Vice President
the southwest Area including Arkansas, Mississippi, Missouri and Texas • 817-884-4414 or MLansford@FarmersNational.com
Land buyers in the state of
Washington continue to outnumber those who are willing to sell, creating
continued strong demand with increased prices for top quality properties,
according to Flo Sayre, real estate broker for Farmers National Company in
"The market is good for all land classes," said Sayre.
Farm operators adding to their holdings and investors still
make up the buy side of the land market. Sales overall are still strong and
auctions are driving prices.
Irrigated land in the area was about $6,850 per acre a year
ago, compared to $7,850 per acre currently. Non-irrigated cropland was near
$850 per acre last year, and current prices are averaging near $1,300 per acre
average for all types of farms, according to Sayre. She noted that land
affected by higher rainfall in the eastern Palouse area was demanding prices as
high as $3,500/acre this fall 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