By Blake Jackson
The growth in Missouri farmland values, after years of significant increases, appears to be stabilizing according to the latest data from the University of Missouri Extension.
The annual Missouri Farmland Values Opinion Survey, orchestrated by Juo-Han Tsay, an assistant professor at the university, gathered over 260 responses from various stakeholders, including lenders, farmers, and rural appraisers, providing a comprehensive overview of current and future land market trends.
From July to September 2024, the survey assessed values across different types of land, including various classes of cropland and pastureland, as well as specialized lands like irrigated cropland, timberland, and hunting/recreational areas.
Although the results showed an overall increase in state averages, the rate of growth has moderated compared to previous years.
For example, while pastureland values have seen notable increases, the price for 'good' non-irrigated cropland has experienced a slight decline, now valued at $8,524 per acre.
Regional variations play a significant role in these dynamics, with the highest land values reported in Missouri’s urban areas, exerting upward pressure on statewide averages. In contrast, the lowest values were found in the southwestern and south-central regions of the state.
The survey also sheds light on the current players in the land market. According to Tsay, "When asked about the sellers of Missouri farmland, our respondents suggested most were retired farmers and estate sales." These sales are often motivated by good market prices or as part of a family succession plan, indicating a strategic approach to land transactions.
Looking ahead to 2025, the survey predicts a moderate increase in land values, with cropland expected to rise by 2.7%, pastureland by 2.9%, and other land types by 2.3%. These projections vary by region, with the highest anticipated growth in northwestern Missouri.
Key factors influencing these trends include interest rates, weather conditions, and commodity prices. The survey's findings emphasize the strong financial positions of farmers acquiring land, suggesting that recent hikes in interest rates have had limited impact on their purchasing decisions.
This nuanced understanding of Missouri's farmland market is vital for anyone involved in buying, selling, or managing agricultural land.
It helps stakeholders make informed decisions, negotiate fair rental agreements, and plan strategically for future changes in the agricultural landscape.
Photo Credit: istock-alenamozhjer
Categories: Missouri, Business