The value of good non-irrigated Missouri cropland averaged $6,326 per acre in 2021 — an increase of 14% relative to 2020, according to the latest Missouri Farmland Values Opinion Survey report from University of Missouri Extension.
Ray Massey, an agricultural economist, led the survey. He predicts that the increase in land values will continue. He predicts that higher land values will lead in the future to higher cash rental rates. A higher land value could also lead to a larger tax base, allowing communities more revenue.
The survey was conducted in September 2021 and collected responses from 88 Missouri farmers, rural appraisers, lenders, and others who are familiar with Missouri’s land values. From 2020 to 2021, the values of cropland, pasture and timberland, as well as hunting/recreational, all increased.
Values of pasture and cropland
This cropland category saw an average 4.3% increase in values between 2017-2020. The average value per acre was $4.877 in 2017, with good nonirrigated cropsland values increasing by $1.449 per annum.
The state’s irrigated cropland averaged $7,132 per acre in 2021, an 11% increase from 2020. In 2018, irrigated crops were included in the survey for the first time. The average value per acre was $5,514. Since then, the irrigated cropland value has increased by $1,618 an acre.
Pastureland values were reported to be an average state of $3,781/acre. In 2021, values increased by 12% compared to 2020. The average pastureland value increased by $865 an acre between 2017 and 2021.
Massey states that several factors have contributed to the rise in cropland value and pasture value, including low commodity prices and proximity of urban areas. Recent years have seen an increase in cropland values due to strong farm revenue.
“If people have money in their pocket, they are willing to buy land, and they will pay more for it,” Massey says.
Timberland, hunting/recreational land and timberland values
In 2021, land used for timber, hunting and recreation also saw an increase in value. Missouri tracts used for hunting or recreation averaged $3,162 per acre in 2021 — an 18% year-over-year change. The average value per acre was $2,048 in 2017 and has increased by $1114 per acre over the past five years.
Missouri timberland values were 17% higher in 2021 than 2020 at $3,070 an acre. In 2017, the average value per acre was $2,012. Timberland values have increased by $1,058 an acre since then.
Survey respondents said that 55% were planning on farming the land themselves, 29% wanted to rent it out, and 15% planned to use it for other purposes. This shows an increase in land purchases for nonagricultural purposes.
For more 2021 land values survey results, including regional breakdowns for Missouri land values, go to muext.us/LandValues to access the full report.
Source: Successful Farming