Farm real estate values, a measurement of the value of all land and buildings on farms, averaged $1,900 per acre on
Cropland and pasture values rose by 13 and 22%, respectively, since
The increase in farm real estate values continues to be driven by a combination of mostly nonagricultural factors, including relative low interest rates and strong demand for nonagricultural land uses. Demand for farm real estate as an investment continues to be a strong market influence.
Regional increases in the average value of farm real estate ranged from 8.9% in the Delta region to 35% in the Mountain region. The highest farm real estate values are in the Northeast region, where urban influences have pushed the average value to $4,550 per acre. In the
The Southeast region had the highest average increase in cropland value, at $4,550, up $890 per acre. In the
The Southeast region had the highest average increase in pasture value, up $1,510 per acre. In the Northern Plains, Southern Plains, Mountain, and Pacific regions (17 western states) pasture values per acre increased 15%, 24%, 54%, and 13%, respectively. Together, the 17 western states account for about 89% of the total pasture acres on farms in the 48 States.
Cash rent is higher
Nationally, cash rents per acre paid to landlords for cropland rose 1.3% while pasture rents increased 4.9% for the 2006 crop and grazing year. Cropland cash rents paid in 2006 averaged $79.00 per acre, compared with $78.00 per acre for 2005. Pasture cash rents averaged $10.80 per acre, 50 cents higher than 2005. The increases in cropland and pasture rental rates continue to reflect producers' optimism following the combination of high production and price levels of major
Cropland cash rents reported in 2006 increased in all regions except the Appalachian, Delta, and Southern Plains regions where rental rates declined marginally. Appalachian cropland cash rents declined by $2.00 from $58.00 to $56.00 per acre in 2006. Delta cropland cash rents decreased by $1.00 per acre to $69.50 in 2006 while cropland cash rents in the Southern Plains decreased by $1.50 to $29.00 per acre for 2006. Cash rents for cropland in the Southeast region at $48.00 per acre remained unchanged from last year. The
The major corn and soybean producing States of Illinois,
Cash rents for pasture land increased in all regions except the Southern Plains. Pasture cash rents increased by $1.00 per acre to $20.00 in the Southeast and by $2.00 per acre to $26.00 in the Northeast region. In the Northern Plains and Southern Plains regions, which account for two-thirds of the cash-rented pasture acreage, changes were marginally higher and lower, respectively. Northern Plains cash rents for pasture increased 50 cents per acre to $12.50 while cash rents for pasture decreased by 20 cents per acre to $8.20 in the Southern Plains. Wisconsin, at $38.00 per acre and unchanged from 2005, continues to lead the Nation with the highest per acre pasture rent.