By Blake Jackson
The 2023 Missouri Farmland Values Opinion Survey from the University of Missouri Extension shows that buyers paid more for Missouri farmland in 2023 than in 2022. The survey, which collects data from Missouri lenders, farmers, rural appraisers, and others familiar with Missouri land values, found that values for cropland, pasture, timber, and hunting/recreational land all increased from 2022 to 2023.
The statewide average of "good" nonirrigated cropland was estimated at $8,631 per acre in 2023, up from $8,318 per acre in 2022. The statewide average of irrigated cropland was estimated at $9,678 per acre in 2023, up from $9,144 per acre in 2022.
Hunting/recreational land had the largest statewide increase of value at 14%, followed by "average" and "poor" pastureland, both with 11% increases from 2022.
Survey respondents indicated that rising interest rates applied downward pressure to farmland values. However, limited land available for sale and strong investor demand were indicated as factors pushing up the price of land in Missouri.
"Looking ahead, our survey respondents forecast land prices to increase in 2024," said Juo-Han Tsay, MU Extension assistant professor and survey organizer. "Interestingly, urban land prices are expected to increase the least, while land values in the west region of Missouri are estimated to increase anywhere from 11% to 14% next year."
The Missouri Farmland Values Opinion Survey offers valuable insights to landowners, potential buyers, and others involved in the agricultural industry. Because no government or public agencies in Missouri require the reporting of land sale transactions, it can be challenging to understand current prices and forward-looking projections for the state's farmland values.
The data from the annual Missouri Farmland Values Opinion Survey supplements state-level estimates published by the USDA and can give stakeholders more clarity into the uniqueness of land value trends across Missouri.
Photo Credit: istock-alenamozhjer
Categories: Missouri, General