Land Values and Cash Rents

Transcription

1 United States Department of Agriculture National Agricultural Statistics Service Sp Sy 3 (05) Land Values and Cash Rents 2005 Summary August 2005

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3 Table of Contents Page Agricultural Land Values Highlights...2 Agricultural Land Values Charts and Maps...3 U. S. Average Farm Real Estate Value, Dollars per Acre, Farm Real Estate Value by State U. S. Average Cropland Value, Dollars per Acre, Cropland Value by State U. S. Average Pasture Value, Dollars per Acre, Pasture Value by State Farm Real Estate: Average Value per Acre, by Region and State, January 1, Cropland: Average Value per Acre, by Region and State, January 1, and Non- Cropland: Average Value per Acre, by State, January 1, Pasture: Average Value per Acre, by Region and State, January 1, Agricultural Cash Rents Highlights...11 Agricultural Cash Rent Charts and Maps...12 U. S. Average Cropland Cash Rent, Dollars per Acre, Cropland Cash Rent by State U. S. Average Pasture Cash Rent, Dollars per Acre, Pasture Cash Rent by State Cropland Rented for Cash: Average Cash Rent per Acre, by Region and State, Pasture Rented for Cash: Average Cash Rent per Acre, by Region and State, Economic Regions...17 Reliability of Data in this Report...18 August NASS, USDA

4 Agricultural Land Values Highlights Farm real estate values, a measurement of the value of all land and buildings on farms, averaged $1,510 per acre on January 1, 2005, up 11.0 percent from This is the largest percentage increase since 1981, when farm real estate values rose 11.1 percent from the previous year. The $150 per acre increase is the largest dollar increase on record. The previous record was 1980, when values climbed $109 per acre above the 1979 value. Cropland and pasture values rose by 11.3 and 9.5 percent, respectively, from January 1, Cropland values averaged $1,970 per acre and pasture values averaged $694 per acre on January 1, 2005, compared with $1,770 and $634 per acre, respectively, a year earlier. The value of other land and buildings increased 11.9 percent. The increase in farm real estate values was driven by a combination of factors, including low interest rates, high commodity production and prices, and strong demand for nonagricultural land uses. Nationally, survey data indicated that agricultural land with potential for immediate development (expected land use if sold) was valued at more than $6,050 per acre. The survey also indicated that agricultural land with potential for future development was valued at nearly $5,400 per acre, about $1,400 higher than the 2004 indication. Demand for farm real estate as an investment continued to be strong. Regional increases in the average value of farm real estate ranged from 8.2 percent in the Delta and Southern Plains regions to 13.2 percent in the Northeast and Southeast Regions. The highest farm real estate values were in the Northeast region, where urban influences have pushed the average value to $4,020 per acre. In the Corn Belt region farm real estate values rose 10.9 percent, to $2,550 per acre. The Mountain region, with its expanse of pasture and rangeland, had the lowest farm real estate value, at $599 per acre. Cropland values in the Southeast region, at $2,960, had the highest average increase in cropland value, up $500 per acre. In the Corn Belt region cropland values rose 12.2 percent, to $2,750 per acre and the Lake States increased 9.4 percent, to $2,220 per acre. Together, the Corn Belt and Lake States regions account for nearly one-third of the U.S. total cropland acres. Pasture values in the Northeast and Appalachian regions had the highest average increase in pasture value, up $300 per acre. In the Northern Plains, Southern Plains, Mountain, and Pacific regions (17 western states) pasture values per acre respectively increased 16.5 percent, 11.4 percent, 14.6 percent, and 9.8 percent. Together, the 17 western states account for about 87 percent of the total pasture acres on farms in the 48 States. August NASS, USDA

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8 Farm Real Estate: Average Value per Acre, by Region and State, January 1, Region and State Northeast: CT DE ME MD MA NH NJ NY PA RI VT Lake States: MI MN WI Corn Belt: IL IN IA MO OH Northern Plains: KS NE ND SD Appalachian: KY NC TN VA WV Southeast: AL FL GA SC Delta States: AR LA MS Southern Plains: OK TX Mountain: AZ 2 CO ID MT NV 2 NM 2 UT 2 WY Pacific: CA OR WA Change Dollars Dollars Dollars Dollars Dollars Percent 2,830 7,700 3,400 1,500 3,800 7,300 2,550 8,100 1,520 3,000 7,700 1,700 2,280 1,400 1,950 1,950 2,290 1,300 2, ,120 1,750 2,680 2,380 1,270 2,030 1,640 2,600 1,330 1,350 1,380 1, , ,120 3,200 1,100 1,300 3,000 8,500 3,700 4,000 8,100 2,800 8,600 1,610 3,250 8,300 1,870 2,470 1,500 2,150 2,030 2,460 1,920 1,380 2, ,250 1,830 2,900 2,300 2,530 1,330 2,140 1,700 2,720 2,050 1,390 1,410 1,440 1, , , , ,240 3,400 1,150 1,390 3,200 9,500 4,000 1,750 4,150 9,300 3,100 9,100 1,700 3,450 9,300 2,050 2,010 2,680 2,300 2,130 2,430 2,570 2,010 1,470 2, ,370 3,100 2,400 2,700 1,400 2,270 1,760 2,900 2,050 1,460 1,480 1,500 1, , , , ,600 1,480 *3,550 10,200 *6,000 *5,700 9,900 3,250 9,750 1,780 3,650 10,200 2,150 2,220 2,920 2,500 2,300 2,610 2,770 1,580 2, *2,560 2,000 3,300 2,500 *3,200 1,500 2,420 1,860 3,100 2,150 *1,580 *1,650 1,580 1, , , ,480 3,800 1,250 1,530 4,020 10,800 8,400 1,950 7,900 10,500 3,450 10,300 1,880 4, ,300 2,480 3,150 2,030 2,850 2,550 2,900 3,050 2,490 1,740 3, ,860 3,570 2,700 3,900 2,740 2,050 3,700 2,590 2,330 1,710 1,820 1,680 1, , , , ,700 4,160 1,350 1, States 3 1,150 * Revised. 1 See page 17 for definition of Regions. 2 Excludes American Indian Reservation Land. 3 Excludes Alaska and Hawaii. 1,210 1,270 1,360 1, August NASS, USDA

9 Cropland: Average Value per Acre, by Region and State, January 1, Region and State Northeast: DE MD NJ NY PA Oth Sts 2 Lake States: MI MN WI Corn Belt: IL IN IA MO OH Northern Plains: KS NE ND SD Appalachian: KY NC TN VA WV Southeast: AL FL GA SC Delta States: AR LA MS Southern Plains: OK TX Mountain: AZ 3 CO ID MT NV 3 NM 3 UT 3 WY Pacific: CA OR WA Change Dollars Dollars Dollars Dollars Dollars Percent 2,820 3,250 3,700 8,700 1,250 3,180 3,510 1,560 1,980 1,350 2,100 2,370 2,330 1,980 1,380 2, , ,210 2,550 2,090 1,530 3,720 1,780 1,450 1,120 1,140 1,160 1, ,030 4, , ,420 2, ,310 5,550 1,430 3,210 3,500 3,900 9,000 1,320 3,350 5,240 1,720 2,150 1,430 2,000 2,180 2,430 2,440 2,040 1,480 2, ,340 2,000 2,750 2,270 2,550 1,920 2,240 3,730 1,970 1,160 1,180 1,190 1, ,120 5, ,440 2, ,410 5,730 1,650 1,450 3,400 3,850 4,000 9,300 1,390 3,500 5,920 1,860 1,520 2,270 2,500 2,550 2,120 1,580 2, , ,490 2,100 2,950 2,800 2,050 1,700 3,690 2,150 1,750 1,210 1,220 1,240 1, ,170 6,000 1, ,470 2, ,500 5,920 1,670 1,470 *3,800 *5,700 *5,600 9,900 1,470 *3,700 *6,230 2,030 2,550 1,690 *2,450 2,700 2,750 2,320 1,690 2,940 * , *747 *2,670 2,230 3,150 2,420 *3,300 *2,460 *3,810 *2,260 1,270 1,290 1,300 1,210 *902 *697 *981 * 6,400 *1,060 *1,710 *548 1,950 *1,450 *2,900 *972 *3,570 *6,020 *1,690 *1,510 4,290 8,000 7,600 10,500 1,530 4,000 6,610 2,220 2,750 2,600 2,750 3,030 3,080 2,650 1,890 3, , ,930 2,400 3,400 2,600 4,000 2,960 4,650 2,730 2,050 1,370 1,420 1,390 1, ,260 6,790 1,110 1, ,070 1,450 2,900 1,010 3,880 6,590 1, States 4 1,510 * Revised. 1 See page 17 for definition of Regions. 2 Includes: CT, ME, MA, NH, RI, and VT. 3 Excludes American Indian Reservation Land. 4 Excludes Alaska and Hawaii. 1,590 1,660 *1,770 1, August NASS, USDA

10 Region, State, and Land Type Corn Belt: MO All Cropland Non- and Non- Cropland: Average Value per Acre, by State, January 1, Change Dollars Dollars Dollars Dollars Dollars Percent 1,380 2,000 1,340 1,480 2,070 1,440 1,580 2,150 1,540 1,690 2,250 1,650 1,890 2, Northern Plains: KS All Cropland Non , , , , NE All Cropland Non- 1, , ,210 1, ,290 1,750 1,430 1, SD All Cropland Non , *747 1, Southeast: FL All Cropland Non- 3,720 4,280 2,530 3,730 4,330 2,460 3,690 4,180 2,670 *3,810 4,400 2,850 4,650 5,500 3, GA All Cropland Non- 1,780 1,700 1,970 2,000 2,150 *2,260 2,100 2,300 2,730 2,650 2, Delta States: AR All Cropland Non- 1,140 1,260 1,030 1,180 1,310 1,070 1,220 1,350 1,100 1,290 1,450 1,150 1,420 1, LA All Cropland Non- 1,160 1,020 1,190 1,230 1,240 1,070 1,280 1,300 1,150 1,340 1,390 1,240 1, MS All Cropland Non- 1,040 1,150 1,010 1,100 1,190 1,080 1,160 1,230 1,140 1,210 1,280 1,190 1,280 1,360 1, Southern Plains: OK All Cropland Non * TX All Cropland Non- See footnote(s) at end of table , * ,130 1, continued August NASS, USDA

11 Region, State, and Land Type Mountain: AZ All Cropland and Non- Cropland: Average Value per Acre, by State, (continued) Change Dollars Dollars Dollars Dollars Dollars Percent 4,800 4,800 5,600 5,600 6,000 6,000 6,400 6,400 6,790 6, CO All Cropland Non , , , *1,060 2, , ID All Cropland Non- 1,530 1, , , *1,710 2, ,840 2, MT All Cropland Non , , , *548 *1,680 * NV All Cropland 1,950 1,950 2,070 2, NM All Cropland Non- 1,420 2, ,440 2, ,470 2, *1,450 *3,000 *270 1,450 3, UT All Cropland Non- 2,790 3, ,880 3, ,960 3, *2,900 *3,800 *850 2,900 4, WY All Cropland Non , , *972 *1,300 *340 1,010 1, Pacific: CA All Cropland Non- 5,550 5,900 5,730 6,100 1,950 5,920 6,300 2,000 *6,020 6,600 2,130 6,590 7,450 2, OR All Cropland Non- 2,150 1,150 1,650 1,670 2,250 *1,690 1,250 2,580 1, WA All Cropland Non- 1,430 3, ,450 3, * Revised. 1 Only States with significant irrigated acreage appear in this table. 2 See page 17 for definition of Regions. 1,470 3, *1,510 3, ,610 3,550 1, August NASS, USDA

12 Pasture: Average Value per Acre, by Region and State, January 1, Region and State Northeast: MD NJ NY PA Oth Sts 2 Lake States: MI MN WI Corn Belt: IL IN IA MO OH Northern Plains: KS NE ND SD Appalachian: KY NC TN VA WV Southeast: AL FL GA SC Delta States: AR LA MS Southern Plains: OK TX Mountain: AZ 3 CO ID MT NV 3 NM 3 UT 3 WY Pacific: CA OR WA Change Dollars Dollars Dollars Dollars Dollars Percent 1,940 3,450 9, ,750 3, , ,010 1, , ,820 1,410 2,640 2,150 2,000 1,060 1,760 1,250 2,280 1,630 1,100 1,070 1, , ,090 3,500 9, , , ,030 1, , ,910 1,440 2,830 2,250 2,100 1,120 1,870 1,300 1,950 2,500 1,750 1,170 1,150 1,270 1, , ,190 3,650 10, , ,100 1,120 1,060 1, , ,000 1,460 3,010 2,250 2,010 1,350 2,100 2,750 1,230 1,210 1, , *2,470 *5,500 10, ,000 *4,140 * 700 1,110 1, ,130 2,100 * * 1,530 3,200 2,450 *2,800 1,280 2,150 1,420 2,250 2,950 2,000 1,300 1,300 1,350 1,270 * * * * *235 *1, ,770 7,300 11, ,480 1, ,400 1,330 1,240 1,000 1,260 2, ,500 1,700 3,430 2,620 3,500 1,380 2,400 1,550 2,600 3,150 2,150 1,510 1,570 1,500 1, ,120 1, States * Revised. 1 See page 17 for definition of Regions. 2 Includes: CT, DE, ME, MA, NH, RI, and VT. 3 Excludes American Indian Reservation Land. 4 Excludes Alaska and Hawaii * August NASS, USDA

13 Agricultural Cash Rents Highlights Nationally, Cash Rents per acre paid to landlords for cropland rose 2.0 percent while pasture rents increased 7.3 percent for the 2005 crop and grazing year. Cropland cash rents paid in 2005 averaged $78.00 per acre, compared with $76.50 per acre for Pasture cash rents averaged $10.30 per acre, 70 cents higher than the $9.60 per acre in The increases in cropland and pasture rental rates continue to reflect producers optimism following the combination of high production and price levels of major U.S. agricultural commodities in Cropland cash rents reported in 2005 increased in all regions except the Mountain region, where rental rates declined 50 cents to $ per acre. The Southern Plains region, at $30.50 per acre, was unchanged. In the remaining regions, increases in cropland cash rents varied from 2.4 percent in the Lake States to 7.9 percent in the Southeast region. The Corn Belt and Northern Plains regions, which together accounted for slightly more than one half of cash-rented cropland acreage, increased 2.6 and 6.0 percent, respectively, from Cropland cash rents increased $3.00 per acre, to $117.00, in the Corn Belt and $3.00 per acre, to $53.00, in the Northern Plains. The major corn and soybean producing States of Illinois, Indiana, and Iowa experienced increases ranging from 1.9 to 4.0 percent for cropland cash rents. Illinois and Iowa cropland cash rents averaged $ and $ per acre, respectively. Pasture cash rents declined 10 cents to $19.00 per acre in the Southeast while the Northeast and Pacific regions were unchanged from a year earlier. In the Northern Plains and Southern Plains regions, which account for two-thirds of the cash-rented pasture acreage, rental rates were up 1.7 percent and 3.7 percent, respectively. Wisconsin, at $38.00 per acre, continues to lead the Nation with the highest per acre pasture rent. August NASS, USDA

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16 Northeast: DE MD NJ NY PA Region, State, and Land Type Cropland Rented for Cash: Average Cash Rent per Acre, by Region and State, Dollars Dollars Dollars Dollars Dollars * Lake States: MI MN WI Corn Belt: IL IN IA MO Non- OH Northern Plains: KS Non-irrigated NE Non- ND SD Non Appalachian: KY NC TN VA WV Southeast: AL FL Non- GA Non- SC * Delta States: AR Non- LA Non- MS Non- See footnote(s) at end of table continued August NASS, USDA

17 Region, State, and Land Type Southern Plains: OK Non- TX Non- Cropland Rented for Cash: Average Cash Rent per Acre, by Region and State, (continued) Dollars Dollars Dollars Dollars Dollars Mountain: AZ CO Non- ID Non- MT Non- UT Pacific: CA OR Non- WA States * Revised. 1 Unless otherwise specified as irrigated or non-irrigated, data are for all cropland. 2 See page 17 for definition of Regions. 3 Excludes Alaska and Hawaii August NASS, USDA

18 Northeast: PA Pasture Rented for Cash: Average Cash Rent per Acre, by Region and State, Region and State Dollars Dollars Dollars Dollars Dollars Lake States: MN WI Corn Belt: IL IA MO Northern Plains: KS NE ND SD Appalachian: NC TN VA Southeast: AL FL GA * Delta States: LA MS Southern Plains: OK TX Mountain: CO MT NM UT WY Pacific: CA States 2 * Revised. 1 See page 17 for definition of Regions. 2 Excludes Alaska and Hawaii August NASS, USDA

19 Economic Regions: Northeast:...CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT. Lake States:...MI, MN, WI. Corn Belt:...IL, IN, IA, MO, OH. Northern Plains:...KS, NE, ND, SD. Appalachian:...KY, NC, TN, VA, WV. Southeast:...AL, FL, GA, SC. Delta States:...AR, LA, MS. Southern Plains:...OK, TX. Mountain:...AZ, CO, ID, MT, NV, NM, UT, WY. Pacific:...CA, OR, WA. August NASS, USDA

20 Reliability of Land Values and Cash Rents in this Report Survey Procedures: The estimates of land values and cash rents in this report are based primarily on the June Area Survey, conducted during the first 2 weeks of June. This annual survey uses a complete, probability-based land-area sampling frame. In 2005, the survey included a stratified sample of 11,114 land areas (segments), averaging approximately 1 square mile in size. Enumerators collecting data for the June area survey contact all agricultural producers operating land within the boundaries of the sampled land segments and record land value information for crop and pasture land within these segments. They also collect an estimated value of all land and buildings for the operator s entire farming operation and the estimated percent change from the previous year. In addition to land values, enumerators collect information on acres of crop and pasture land rented for cash and the per acre cash rent paid. Survey reported data are reviewed for reasonableness and consistency by comparing with other data reported in the survey and with data reported within the segment the previous year. Estimating Procedures: Once the data are summarized, each Field Office (FO) conducts an analysis of the summarized indications and any other available information for their State. FOs then set estimates for land values and cash rents and submit these recommendations along with their assessment of survey and other administrative information to the (ASB). Survey data are also summarized for Regional and National levels and reviewed independently of each State s review. National and Regional targets are established by the ASB prior to submission of FO recommendations. After FO recommendations are submitted, the ASB reviews the FO estimates and supporting comments, and any conflicts with targeted Regional and National levels are resolved. State level estimates are used to develop Regional and National estimates for land values and cash rents. The State estimates are weighted by the amount of cropland and pasture land in each state, based on the most recent Censuses of Agriculture. NASS considers cropland pastured to be cropland for the purposes of this report. This is a change from previous reports when it was considered pasture land. NASS will transition from the 1997 census weights to the 2002 census weights over the next four years. Revision Policy: For non-census years, land value and cash rent estimates are subject to an annual revision the following year. After the 5-year Census of Agriculture is completed, estimates for the non-census years are subject to a final historic revision. The basis for revision must be supported by additional data that directly affect the level of the estimate. Reliability: The June Area Survey from which land value and cash rent estimates are made is subject to sampling and non-sampling errors that are common to all surveys. Both types of error affect the "accuracy" of the estimates. Sampling error occurs because a complete census is not taken. The sampling error measures the variation in estimates from the average of all possible samples. An estimate of 100 with a sampling error of 1.0 would mean that chances are 19 out of 20 (95 percent confidence interval) that the estimates from all possible samples averaged together would be between 98 and 102 (the survey indication plus or minus two times the sampling error). The sampling errors from the 2005 area frame survey are listed below: U.S. Regions (range low to high) Farm Real Estate Value (%) to 8.4 All Cropland Value (%) to 12.4 Cropland (%) to 15.5 Non-irrigated Cropland (%) to 16.9 Pasture Value (%) to 16.8 Cropland Cash Rent (%) to 15.9 Pasture Cash Rent (%) to 38.2 August NASS, USDA

21 Sampling errors cannot be applied directly to the values published in this report to determine confidence intervals since the official estimates represent a composite of information from more than a single source. Non-sampling errors cannot be measured directly and can occur in complete censuses as well as sample surveys. They are caused by the inability to obtain correct information from each person sampled, differences in interpreting questions or definitions, and mistakes in coding or processing data. To minimize non-sampling errors, vigorous quality controls are used in the data collection process and all data are carefully reviewed for consistency and reasonableness. August NASS, USDA

22 Released August 5, 2005, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For information on Land Values and Cash Rents 2005 Summary call Jim Williams or Kevin Hintzman at (202) , office hours 7:30 a.m. to 4:00 p.m. ET. ACCESS TO REPORTS!! For your convenience, there are several ways to obtain NASS reports, data products, and services: INTERNET ACCESS All NASS reports are available free of charge on the worldwide Internet. For access, connect to the Internet and go to the NASS Home Page at: Select Today s Reports or Publications and then Reports Calendar or Publications and then Search, by Title or Subject. SUBSCRIPTION All NASS reports are available by subscription free of charge direct to your address. Starting with the NASS Home Page at click on Publications, then click on the Subscribe by button which takes you to the page describing delivery of reports. Finally, click on Go to the Subscription Page and follow the instructions PRINTED REPORTS OR DATA PRODUCTS CALL OUR TOLL-FREE ORDER DESK: (U.S. and Canada) Other areas, please call FAX: (Visa, MasterCard, check, or money order acceptable for payment.) ASSISTANCE For assistance with general agricultural statistics or further information about NASS or its products or services, contact the Agricultural Statistics Hotline at , 7:30 a.m. to 4:00 p.m. ET, or nass@nass.usda.gov. The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA s TARGET Center at (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC or call (voice and TDD). USDA is an equal opportunity provider and employer.