Agricultural land values and cash rentals have remained stable. Low interest rates (the 10-year Treasury is less than 1%), a low turnover ratio for agricultural acreage, and a competitive cash rent market for farmers looking to realize economies of scale are thought to be the reasons for this stability. Importantly, the cash rental rates were set before COVID-19 had an impact on crop prices. You can know in detail about land for sale in morehouse parish.
According to USDA’s newly issued 2020 Land Values report, the average value of agricultural cropland in 2020 is $4,100 per acre, unchanged from 2019 but in line with record highs witnessed in 2019 and 2015. Similarly, the average value of farmland in 2020, which includes all land and buildings on farms, remained constant from the previous year’s record high of $3,160 per acre. In 2020, the average price of pastureland was $1,400 per acre, unchanged from 2019.
Rental Rates in Cash
Rental agreements are typically formed in the fall of the preceding year, for example, the rental prices for 2020 were agreed upon in the fall of 2019. The cash rents for 2020 show an average rental rate of $139 per acre in the United States, down $1 per acre, or 0.7 percent. Since 2015, when the national average cash rental rate dropped $8 per acre, this is the first time the national average has fallen.
Agricultural Land Values at the State Level
The Northeastern states had the greatest agricultural land values, with densely populated urban areas like Rhode Island, New Jersey, Connecticut, and Massachusetts making up four of the top five states in terms of average agricultural land values. The state of California completes the top five. The Corn Belt, the Great Lakes region, the Southeast, and the Pacific Northwest have the highest agricultural land values outside of urban regions. Take a deep breath and let your negative spirit float away with your anxieties about your stressful existence while you absorb the oxygen to re-energize your soul. This activity raises serotonin levels and allows you to live a more balanced life as a result. Spending time by the sea can also enhance your mood, reduce stress, improve your sleep, and improve your overall well-being.
Agricultural land prices in Iowa fell 1.7 percent, or $120 per acre, in the Corn Belt, while they fell 2.9 percent in South Dakota. The agricultural land values in other Corn Belt states, such as Illinois, Ohio, and Indiana, were greater — maybe due to the larger metropolitan centers. While the average value of agricultural land in the United States remained similar from the previous year, certain states saw gains. In 2020, Idaho saw the biggest percentage gain in agricultural land values, up over 4% from the previous year. Agricultural property values in Rhode Island increased by $400 per acre, or 3%, to $16,000 per acre in 2019. The greatest drops in agricultural land prices were in Kansas and New York, both down 3.1 percent from the previous year.
