HDR1012000170031001971500Agricultural Land Values And Cash Rents Agricultural Land Values And Agricultural Cash Rents National Agricultural Statistics Service USDA Washington, D.C. Released October 1, 1997, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For information on "Agricultural Land Values and Agricultural Cash Rents" call Longino Bustillos at (202) 690-3231, office hours 7:30 a.m. to 4:00 p.m. ET. Farm Real Estate Values Continue to Climb The January 1, 1997 U.S. farm real estate value, including land and buildings, averaged a new high of $942 per acre, up 6 percent from 1996. This rise in farm real estate marks the 10th straight year of increase. Since 1987 the average U.S. farm real estate value has grown from $599 to $942 per acre, an increase of 57 percent. Regional increases in the value of farm real estate during 1996 ranged from 3 to 8 percent. The Northeast Region with its urban influences had the highest average value of land and buildings at $2,599 per acre, up 5 percent over the previous year. The Corn Belt and Lake Regions showed the largest percentage gains of 8 and 7 percent, respectively, from 1996. The Southeast and the Delta showed the lowest increase at 3 percent each, while the remaining regions rose 5 to 6 percent. All States showed increases from the previous year except for Florida which remained virtually the same. Since 1990, the Corn Belt and Mountain regions have shown the largest real estate value gains at 53 and 52 percent, respectively. The Southern Plains at 18 percent and Northern Plains at 26 percent had the least amount of gain during the decade. 1997 Cash Rents Mostly Up Cash rents for agricultural cropland increased for most States while a few States showed small declines. Cropland cash rent estimates were made for 34 States. California again had the highest cash rent for irrigated land at $218 per acre. The major corn producing States of Iowa, Illinois, and Nebraska all had rents exceding $100 per acre. Several States in the Appalachian region reported double digit percentage increases in cropland rents. Rates in the Southeast region remained steady with little to no rise. Pasture cash rents for 1997 increased from the previous year in all 20 States where estimates are made, except Wisconsin and Kansas. Iowa and Wisconsin had the highest pasture rents at $31.10 and $30.00, respectively, while Texas, Oklahoma, New Mexico, North Dakota, and South Dakota were all under $10.00 per acre. Sp Sy 3 (10-97) Farm Real Estate: Average Value per Acre, by State, January 1, 1980-97 1/2/ -------------------------------------------------------------------------------- : : : : : : : : Change State : 1980 : 1985 : 1990 : 1994 : 1995 : 1996 3/:1997: 1996-97 -------------------------------------------------------------------------------- : --------------------- Dollars ------------------ Percent : Northeast: : 1,269 1,346 1,848 2,311 2,414 2,484 2,599 5 Connecticut : 2,387 3,005 5,033 6,495 6,567 6,810 7,500 10 Delaware : 1,798 1,596 2,214 2,511 2,689 2,907 3,170 9 Maine : 594 774 1,073 1,232 1,245 1,291 1,300 1 Maryland : 2,238 2,197 2,563 3,310 3,707 3,826 4,000 5 Massachusetts : 1,608 2,377 4,227 5,339 5,398 5,597 6,200 11 New Hampshire : 1,004 1,439 2,269 2,459 2,486 2,578 2,600 1 New Jersey : 2,947 2,951 5,494 7,407 8,052 8,172 8,290 1 New York : 720 820 1,014 1,383 1,380 1,333 1,390 4 Pennsylvania : 1,464 1,427 1,929 2,247 2,339 2,505 2,630 5 Rhode Island : 2,523 2,990 5,564 6,871 6,947 7,204 7,900 10 Vermont : 721 947 1,262 1,463 1,479 1,534 1,550 1 Lake States: : 1,065 952 843 986 1,048 1,126 1,205 7 Michigan : 1,111 1,108 1,005 1,214 1,329 1,470 1,600 9 Minnesota : 1,086 898 810 914 936 976 1,040 7 Wisconsin : 1,004 944 801 968 1,065 1,175 1,250 6 Corn Belt: : 1,643 1,108 1,111 1,331 1,448 1,578 1,699 8 Illinois : 2,041 1,381 1,405 1,694 1,863 2,064 2,210 7 Indiana : 1,863 1,344 1,254 1,504 1,654 1,801 1,970 9 Iowa : 1,840 1,091 1,090 1,281 1,349 1,442 1,570 9 Missouri : 902 689 701 825 880 948 1,010 7 Ohio : 1,730 1,215 1,273 1,593 1,800 1,989 2,110 6 Northern Plains: : 485 412 401 432 458 476 504 6 Kansas : 587 488 450 503 535 553 575 4 Nebraska : 635 485 524 562 596 632 680 8 North Dakota : 405 373 321 353 373 383 410 7 South Dakota : 292 289 291 286 302 310 325 5 Appalachian: : 1,014 1,035 1,178 1,336 1,436 1,597 1,685 6 Kentucky : 976 955 978 1,136 1,250 1,377 1,450 5 North Carolina : 1,219 1,242 1,355 1,609 1,749 1,970 2,050 4 Tennessee : 976 944 1,067 1,250 1,336 1,526 1,650 8 Virginia : 1,028 1,112 1,665 1,690 1,771 1,925 2,030 6 West Virginia :: 669 607 664 869 910 965 1,000 4 Southeast: : 1,005 1,068 1,300 1,427 1,533 1,631 1,683 3 Alabama : 780 797 890 1,117 1,262 1,387 1,480 7 Florida : 1,381 1,599 2,070 2,165 2,219 2,306 2,300 0 Georgia : 896 886 1,079 1,154 1,256 1,358 1,430 5 South Carolina : 900 898 1,011 1,204 1,337 1,363 1,400 3 Delta States: : 966 1,012 806 912 972 1,009 1,041 3 Arkansas : 918 907 796 927 983 989 1,010 2 Louisiana : 1,256 1,407 915 1,000 1,082 1,176 1,230 5 Mississippi : 819 855 736 836 886 917 950 4 Southern Plains: : 472 675 504 521 550 565 594 5 Oklahoma : 614 597 491 517 547 547 570 4 Texas : 436 694 507 522 550 570 600 5 Mountain: : 284 300 265 319 346 379 403 6 Arizona : 267 295 267 325 347 399 420 5 Colorado : 387 437 374 479 520 558 590 6 Idaho : 698 739 658 774 836 905 960 6 Montana : 235 243 222 254 277 289 305 6 Nevada : 248 244 207 268 289 332 350 5 New Mexico : 185 185 185 208 225 258 280 9 Utah : 530 513 398 537 606 697 750 8 Wyoming : 161 181 153 180 192 206 220 7 Pacific: : 1,037 1,293 1,259 1,510 1,549 1,676 1,774 6 California : 1,424 1,841 1,884 2,213 2,215 2,404 2,510 4 Oregon : 587 615 573 747 844 928 1,000 8 Washington : 736 943 821 1,025 1,065 1,117 1,230 10 : 48 States : 737 713 683 782 832 890 942 6 -------------------------------------------------------------------------------- 1/ Value of farmland and buildings. 2/ Estimates for 1996 and prior years previously published by the Economic Research Service, USDA. 3/ Revised 1996 for South Dakota and Texas. Cropland Rented for Cash: Average Cash Rent per Acre, by State, 1994-97 1/2/ ------------------------------------------------------------------------- State and Land Type : 1994 : 1995 : 1996 3/ : 1997 ------------------------------------------------------------------------- : ---------------- Dollars ---------------- : Northeast: : New England 4/ : 31.50 35.20 30.70 * Delaware : 54.90 61.10 64.30 61.50 Maryland : 41.40 44.70 48.00 51.30 New Jersey : 42.90 45.40 44.80 47.10 New York : 25.10 25.10 29.00 29.20 Pennsylvania : 37.70 38.80 38.50 41.00 : Lake States: : Michigan : 48.00 49.70 52.20 57.30 Minnesota : 66.00 70.10 73.80 75.60 Wisconsin : 48.70 46.20 48.50 55.00 : Corn Belt: : Illinois : 99.50 99.70 106.00 109.00 Indiana : 83.40 88.40 94.80 99.50 Iowa : 98.60 99.60 105.00 110.00 Missouri : Non-Irrigated : 55.10 51.10 50.00 56.00 Ohio : 64.50 67.10 70.80 72.50 : Northern Plains: : Kansas : Irrigated : * * 66.30 69.00 Non-Irrigated : 32.60 35.50 32.70 34.50 Nebraska : Irrigated : 108.40 111.10 112.00 116.00 Non-Irrigated : 56.70 57.20 60.00 63.40 North Dakota : 32.90 33.10 34.00 35.00 South Dakota : Non-Irrigated : 30.00 30.20 31.90 35.00 : Appalachian: : Kentucky : 49.10 52.80 64.00 73.00 North Carolina : 32.50 33.60 39.00 43.00 Tennessee : 46.70 43.00 48.30 56.50 Virginia : 35.80 35.70 36.00 36.50 West Virginia : 31.00 30.00 32.00 32.00 : Southeast: : Alabama : 31.60 36.20 39.00 35.00 Florida : Irrigated : 136.30 183.50 * * Non-Irrigated : 20.80 22.50 30.00 31.00 Georgia : Irrigated : 56.10 60.80 66.90 68.00 Non-Irrigated : 28.70 32.90 36.40 36.80 South Carolina : 23.90 23.50 23.80 24.00 : Delta States: : Arkansas : Irrigated : * 58.70 * 73.00 Non-Irrigated : 46.90 48.40 48.80 53.00 Louisiana : Irrigated : * * 65.30 70.60 Non-Irrigated : 47.90 55.30 53.00 48.00 ------------------------------------------------------------------------- - Continued Cropland Rented for Cash: Average Cash Rent per Acre, by State, 1994-97 1/2/ -------------------------------------------------------------------------- State and Land Type : 1994 : 1995 : 1996 3/ : 1997 -------------------------------------------------------------------------- : ---------------- Dollars ---------------- : Mississippi : Irrigated : * 70.00 70.00 71.20 Non-Irrigated : 44.30 41.60 45.00 47.30 : Southern Plains: : Oklahoma : Non-Irrigated : 25.50 25.10 25.60 26.60 Texas : Irrigated : 58.50 53.80 53.00 50.00 Non-Irrigated : 17.60 17.00 22.00 24.00 : Mountain: : Arizona : Irrigated : 80.60 87.40 94.60 98.60 Colorado : Irrigated : * * * * Idaho : Irrigated : 99.50 112.30 113.00 * Non-Irrigated : * * 44.10 * Montana : Non-Irrigated : 15.20 15.30 17.00 17.00 Nevada : Irrigated : * * * * New Mexico : Irrigated : 77.70 88.00 * * Utah : Irrigated : 51.40 50.90 60.00 * Wyoming : Irrigated : * * * * : Pacific: : California : Irrigated : 176.00 189.60 210.00 218.00 Oregon : Irrigated : 125.50 130.00 115.00 * Non-Irrigated : 59.10 66.00 65.80 * Washington : Irrigated : 127.90 137.80 138.00 * Non-Irrigated : 69.50 70.80 * * -------------------------------------------------------------------------- * Insufficient reports to publish data. 1/ Estimates for 1996 and prior years previously published by the Economic Research Service, USDA. 2/ Unless otherwise specified as irrigated or non-irrigated, data are for all cropland. 3/ Revised 1996 for Alabama, Kansas, Missouri, Mississippi, Montana, Nebraska, Texas, and Virginia. 4/ Includes: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Pasture Rented for Cash: Average Cash Rent per Acre by State, 1994-97 1/ --------------------------------------------------------------------------- State : 1994 : 1995 : 1996 2/ : 1997 --------------------------------------------------------------------------- : ---------------- Dollars ---------------- : Northeast: : New England 3/ : 20.60 20.90 * * Maryland : 33.50 * * * New York : 14.70 14.50 14.50 15.20 Pennsylvania : 20.70 29.80 37.00 37.60 : Lake States: : Michigan : 22.10 * * * Minnesota : 16.20 16.50 16.00 * Wisconsin : 25.50 31.40 35.00 30.00 : Corn Belt: : Illinois : 31.00 27.65 29.40 * Indiana : 32.90 * * * Iowa : 26.35 28.05 28.90 31.10 Missouri : 18.50 16.40 20.00 20.00 Ohio : 25.50 * * * : Northern Plains: : Kansas : 12.20 11.70 11.90 11.60 Nebraska : 10.20 9.20 10.00 10.40 North Dakota : 8.30 8.00 8.50 9.00 South Dakota : 9.70 8.50 9.10 9.20 : Appalachian: : North Carolina : 16.90 17.00 22.30 24.00 Tennessee : 15.20 14.30 13.50 16.00 Virginia : 14.80 14.00 15.00 16.00 West Virginia : 17.00 14.00 * * : Southeast: : Alabama : 13.10 12.50 15.80 16.50 Florida : 17.00 19.50 17.40 17.50 Georgia : 20.00 19.20 23.20 23.70 South Carolina : * 16.11 * * : Delta States: : Arkansas : 20.90 15.60 * * Louisiana : 13.00 12.60 12.60 13.00 Mississippi : 15.90 13.00 15.60 16.40 : Southern Plains: : Oklahoma : 9.40 9.20 8.00 8.10 Texas : 5.00 4.80 5.40 5.60 : Mountain: : Colorado : 11.50 * * * Idaho : 28.20 29.30 * * Montana : 5.50 5.10 7.20 * Nevada : * * * * New Mexico : 1.60 1.80 * 1.30 Utah : 16.30 13.70 * * Wyoming : 3.10 3.50 * * : Pacific: : California : 26.90 39.30 * * Oregon : 21.50 * * * --------------------------------------------------------------------------- * Insufficient reports to publish data. 1/ Estimates for 1996 and prior years previously published by the Economic Research Service, USDA. 2/ Revised 1996 for Virginia and Wisconsin. 3/ Includes: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Reliability of Data in this Report Survey Procedures: The land value and cash rent estimates in this report are based primarily on the June Agriculture Survey conducted the first 2 weeks of June. This survey is based on a probability area frame with a sample of approximately 10,800 segments or parcels of land which average approximately 1 square mile. Enumerators conducting the area survey contact all farmers having operations within the sampled segments and collect land values and cash rents for their operation. From these data, estimates are calculated. Estimating Procedures: National, Regional, and State farm real estate value data were reviewed for reasonability and consistency. Each State Statistical Office submits their farm real estate value analyses to the Agricultural Statistics Board (ASB) which prepares the January 1 based estimates for publication. NASS uses the Census of Agriculture which is conducted every 5 years to benchmark farm real estate values. For years between census surveys, annual percent changes in value from the June Agriculture Survey are calculated and those percentage changes are applied to the Census benchmark. State cash rent data were reviewed for reasonability and consistency. Each State Statistical Office submits their pasture and cropland cash rent analyses to the Agricultural Statistics Board (ASB) which prepares the crop or grazing year cash rent estimates for publication. Cash rent estimates are primarily based on June Agriculture Survey indicators. Revision Policy: Land Values and Cash Rents are subject to revision the following year and following the five-year Census of Agriculture. The basis for revision must be supported by additional data that directly affect the level of the estimate. Reliability: The survey used to make land value and cash rent estimates are subject to sampling and non-sampling type errors that are common to all surveys. Both types affect the "precision" 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. 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. An estimate of 100 with a sampling error of 1 would mean that chances are 19 out of 20 that the estimates from all possible samples averaged together would be between 98 and 102; which is the survey estimate, plus or minus two times the sampling error. The relative sampling error from the 1997 area frame survey for U.S. land values was 2 percent while regional sampling errors were slightly higher. Cash rent relative sampling errors for estimated States, ranged from 2 percent to 24 percent for cropland rents and from 6 percent to 38 percent for pasture rents. Nonsampling errors 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 reasonability. The next "Agricultural Land Values" report will be released at 3:00 p.m. ET on March 17, 1998. The next "Agricultural Cash Rents" report will be released at 3:00 p.m. ET on August 25, 1998. The United States Department of Agriculture (USDA) prohibits discrimination in its programs on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, and marital or familial status. 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