Farm Credit Services of America
Real Estate Trends
January 1, 2013
Benchmark Farm Value Trends:
Farm Credit Services of America monitors real estate value trends through semi-annual appraisals of sixty-five agricultural farms located throughout our Association. The Appraisal Team updates benchmark farm values based on recent real estate sales on January 1st and July 1st each year.
The average change in benchmark farm values is shown below. The number of benchmark farms is shown in parenthesis after each state.
State Six Month One Year Five Year Ten Year
Iowa (21): 13.8% 20.8% 109.5% 303.1%
Nebraska (19): 12.3% 30.7% 150.3% 313.3%
South Dakota (23): 17.6% 32.7% 99.1% 328.5%
Wyoming (2): 0.0% 1.1% -5.9% 95.7%
The real estate market has been active in South Dakota, Nebraska, and Iowa in 2012 with a record number of public auctions. There is strong demand for cropland and pasture across the Association.
The six month benchmark farm trends indicate:
- All twenty-one benchmark farm values in the state of Iowa increased over the past six months. The benchmarks had individual value increases from 5.2% to 25.5% with an average increase of 13.8%.
- All nineteen benchmark farms values in the state of Nebraska increased over the past six months. The benchmarks had individual value increases from 2.0% to 29.9% with an average increase of 12.3%.
- Twenty-two of the twenty-three benchmark farm values in the state of South Dakota increased over the past six months with one benchmark farm value being considered stable. The benchmarks had individual value changes from stable to +37.6% with an average increase of 17.5%.
- Wyoming’s two benchmark farm values were considered stable.
The strong demand for agricultural real estate is fueled by profitable cash grain production, relatively low interest rates, and a lack of alternative investments from both the buyer’s and seller’s perspective.
We will continue to monitor drought conditions across our Association.