Cropland values drop 3.9% in 2008

The USDA issued a report on Land Values and Cash Rents for January 1, 2008 to January, 1, 2009.  This is a highly detailed report that summarizes the changes in land values and cash rents by region for calendar year 2008.

Some of the highlights are as follows:

•  Average cropland values decreased by 3.9% or $110 per acre to $2,650 per acre.
• In the Cornbelt region, the decrease was 4.0% or $160 per acre to $3,870 per acre.
• In the Northern Plains and Delta regions, cropland values actually increased by 1.6% and .6%, respectively.
• Pasture values decreased by $20 per acre overall, however the Mountain region had a 16% decline in 2008.
• Although cropland values dropped in 2008, they have increased from $1,460 in 2000 to about $2,650 in 2009 or an overall 92% increase.
• In the Cornbelt, Illinois and Iowa still have average cropland values of more than $4,000 per acre.

Some highlights related to cash rents are:

• Annual cash rents rose by $4.50 or 5.3% for the year.
• Pasture rents remained unchanged.
• Cropland cash rents averaged $90 per acre, compared with $85.50 the previous year.
• The Cornbelt region had an average increase of $7 per acre to $146.
• Iowa had the highest Cornbelt average at $180 while Illinois was right behind with $170 per acre.
• California had the highest overall cash rent at $360 per acre and Washington was right behind with $245 per acre.  These were the only two states over $200 per acre.

There is a wealth of information in this report and it would be worth reading it to see how your farm operation compares to your state and region.