oklahoma agricultural land value update
DESCRIPTION
Oklahoma Agricultural Land Value Update. Roger Sahs, Extension Specialist OSU Department of Agricultural Economics. OK Land Values by Region, 2013*. Panhandle Tracts 23 Size 763 $/Acre $790 % Chg -2.3. West-Northwest Tracts 140 Size 180 - PowerPoint PPT PresentationTRANSCRIPT
Oklahoma Agricultural Land Value Update
Roger Sahs, Extension SpecialistOSU Department of Agricultural Economics
OK Land Values by Region, 2013*PanhandleTracts 23Size 763$/Acre $790% Chg -2.3
West-NorthwestTracts 140Size 180$/Acre $1,529% Chg +16.7
North CentralTracts 177Size 133$/Acre $1,952% Chg +21.4
NortheastTracts 328Size 156$/Acre $1,823% Chg +11.6
East-NortheastTracts 43Size 183$/Acre $1,925% Chg +5.3
South CentralTracts 102Size 209$/Acre $1,750% Chg +11.2
SoutheastTracts 252Size 294 $/Acre $1,696% Chg +9.7
State AveragesTracts 1,202Size 205$/Acre $1,705% Chg +16.2
SouthwestTracts 137Size 188$/Acre $1,354% Chg +15.5
*Tracts >= 40 Acres and <= $6000/Acre
District2013 One Year
Change3 Year
Change10 Year Change
$/ac Percent Change
Panhandle 790 -2.3 38.1 132.9
West-NW 1,529 16.7 53.0 204.8
Southwest 1,354 15.5 36.9 170.4
NC-Central 1,952 21.4 47.1 122.2
South Central
1,750 11.2 18.2 97.2
Northeast 1,823 11.6 13.5 99.9
East-NE 1,925 5.3 10.4 67.8
Southeast 1,696 9.7 21.0 121.7
OK Crop 1,955 24.8 61.3 173.9
OK Pasture 1,747 15.5 21.6 106.3
Oklahoma 1,705 16.2 28.1 118.4
Recent Trends in Oklahoma Land Values
Source: www.agecon.okstate.edu/oklandvalues
Oklahoma Cropland vs Pastureland Prices*
Source: www.agecon.okstate.edu/oklandvalues
Upward but not steady climb in values.
“Boom to Bust” was only 30 years ago.
Major increase in values in recent years especially cropland.
*Cropland and pasture tracts defined as having 85%+ cropland and pasture utilization, respectively.
Oklahoma Cropland and Pastureland Prices Nominal vs Inflation Adjusted (base year 2013)
Cropland
Pasture
Source: www.agecon.okstate.edu/oklandvalues
1973-1975 Average ValueTracts >= 40 Acres and <= $3000/Acre
Source: www.agecon.okstate.edu/oklandvalues
2011-2013 Average ValueTracts >= 40 Acres and <= $6000/Acre
Source: www.agecon.okstate.edu/oklandvalues
County, Regional, and Oklahoma Comparisons
Source: www.agecon.okstate.edu/oklandvalues
Key Land drivers looking ahead…
Recent commodity prices and farm incomes
Interest rate levels Financial health of current buyers
Non-irrigated Cropland Value and Wheat Revenue in Oklahoma
USDA/NASS data
Correlation = .77
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
50
100
150
200
250
300
-
200
400
600
800
1,000
1,200
1,400
1,600
Wheat revenue Linear (Wheat revenue) Dry cropland value
Whe
at R
even
ue (
$/A
c.)
Dry
cro
plan
d va
lue
($/A
c.)
Source: KC Federal Reserve Bank, August 2014
Debt levels are still low….
Source: Daily Oklahoman (Newsok.com), June 2014
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Other Resources
• Kansas City Federal Reserve Bank– http://www.kc.frb.org/– Choose Ag in Economy section, then Current Survey
• USDA Ag Land Value Data and Reports– http://www.nass.usda.gov/– Choose Economics and Prices Link, then Agricultural Land
Values in Reports section