Farm Progress

Despite the slump in commodity prices, producers are hanging on.

Robert Waggener

August 29, 2017

2 Min Read
WATER WORKS: This dry bean field is in the dry Wind River Basin near Riverton, Wyo., where farmers rely heavily on irrigation water.

Wyoming’s farm and ranch real estate market has been relatively stable in the past year, an indicator that agricultural producers weathered the drastic drop in crop and livestock prices, according to longtime Cowboy State real estate appraiser Rick Six.

Another generally positive indicator is the fact that there hasn’t been a lot of activity when it comes to working farms and ranches being put on the market, says Six, owner of Worland, Wyo.-based Six Appraisal Services, which does business in western, central and north-central Wyoming.

“We’ve had a few sales in our area, though they’ve been limited in the past year, which is a sign that the farm and ranch economy in this part of Wyoming is fairly stable,” Six says. “Commodity prices are still down some, but I don’t see an overly large amount of stress on agriculture.”

He adds: “If there was a lot of stress on the ag community because of low commodity prices and high interest rates, we would be seeing more agricultural land on the market. But right now, there are not a lot of ranches or farms for sale — which to me is a good sign, from an economic standpoint.”

Though that has meant a decrease in appraisal work for those wishing to sell and buy, Six says, the appraisal business is strong when it comes to other aspects of agriculture. Some of this involves estate planning, while other producers are having their farms and ranches appraised for lending purposes. Examples of the latter include refinancing to consolidate debt or decrease interest rates.

In the coming year, Six projects that the ranch and farm real estate market in Wyoming will remain fairly stable, but that could hinge, in part, on interest rates.

“If they start climbing you might see some more land go on the market, but I don’t see that happening in the near term,” he says.

Farmland values
The 2017 Wyoming average farmland real estate value, a measurement of the value of all land and buildings on farms, was $660 per acre, which is unchanged from 2016 and 2015, according to the latest report from the USDA’s National Agricultural Statistics Service.

Wyoming and Nevada were the only states in the Western Farmer-Stockman coverage area that didn’t see a change in farm real estate value, according to the 2017 report, which was released in August. Nevada’s per-acre farm value remained at $1,110.

The other six states all saw a boost in farmland value.

They include Washington, $3,000 per acre, up 5.3%; Oregon, $2,310, up 5%; Idaho, $2,600, up 4.0%; Montana, $920, up 2.2%; Utah, $2,070, up 1.5%; and Colorado, $1,430, up 0.7%.

 Wagggener writes from Laramie, Wyo.

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like