USDA released its annual Land Values report this week (August 6, 2015). Nationwide, farm real estate value averaged $3,020 per acre for 2015 which is an increase of 2.4 percent from 2014 values. The Southern Plains region shows the sharpest increase of 6.1% while the Corn Belt region shows a slight 0.3% decline. The highest farm real estate values are in the Corn Belt region at average of $6,350 per acre. The lowest average farm real estate values are in the Mountain region at average of $1,100 per acre.
Looking at the Corn Belt region, average farm real estate value in Iowa declined 5.9% to an average of $8,000 an acre. Illinois shows a slight 0.3% decline to $7,500 per acre. Indiana reports an increase of 2.9% to an average value of $7,150 per acre, and Ohio indicates a 3.6% increase to an average of $5,750 an acre. Missouri reports an increase of 8.1% to an average of $3,350 per acre.
The average value of the Corn Belt region was $6,350 per acre in 2015, down 0.3 percent compared with $6,370 per acre a year ago. This decline represents the first such decline in the Corn Belt region since 2010 and reflects lower corn and soybean prices. Low agricultural commodity prices make farmland a less desirable investment.
Farm land is the major asset of the farm sector in Corn Belt. Hence, changes in the agricultural land values are a critical measurement of farm sector performances and financial well-being of crop and livestock producers in the Corn Belt.
- land values