Farmland Values Seem to Hold Steady or Even Increase
The Kansas City Federal Reserve issues a quarterly report on Ag Credit conditions in their district. The latest report seems to indicate that farmland values remain steady and in some parts have even increased.
Their report recaps the changes in values for the area from Montana to Texas and then up to Indiana.
We will recap the states that have shown a decrease in values first.
- The mountain states of Colorado, Wyoming and Northern New Mexico show a decrease of about 5%. The decrease appears to be due to lingering drought in that area.
- Minnesota and Northwestern Wisconsin shows a decrease of 4%. This could be due to the challenges that dairies were having in those states.
- Iowa, Kansas, Northern Illinois and South Dakota show no change in values.
- Southern Wisconsin shows a slim increase of 1$.
- Nebraska shows a 2% increase.
- Oklahoma and Northern Indiana show a 4% increase in values.
- North Dakota showed a 5% increase and the largest increase was in Western Missouri at 7%.
The bottom line is that farm values continue to show steadiness in values and this survey was before the additional stimulus from CFAP2 and the increase in crop values. We wonder what the report might show next year.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
The link to the document doe not work
Thank you