Michigan Farmland Values Continues to Rise
Source: USAgNet.com
February 18, 2008
Michigan farmland values continued their steady upward march in 2007, marking the 20th year in a row that land values have increased. The annual Michigan Land Value survey conducted in the spring of 2007 by The Department of Agricultural, Food, and Resource Economics at Michigan State University collects information on the value of different types of land across Michigan. The 2007 survey reported land values, when compared with 2006, increasing around 9 percent across the state. Average farmland values in spring 2007 were reported to be.
The USDA reported in its "Agricultural Land Values and Cash Rents" that Michigan's agricultural cropland prices increased more than 14 percent during the 2006 calendar year to an average price of $3,450 per acre. The most recent data on land prices comes from the Federal Reserve Bank of Chicago report, which found Michigan land prices increased 10 percent from Oct. 1, 2006 to Oct. 1, 2007. According to USDA statistics, the last time farmland values in Michigan experienced a year-to-year decline was January 1987.
Cash rent rates rose slightly for tiled and non-tiled crop land, but sugar beet and irrigated land remained almost unchanged. Strong crop prices, which translate into strong returns on land, likely mean higher land rents in 2008. Fifty-two percent of total crop acres were controlled through leasing arrangements, with 83 percent on a cash rent basis. Average Michigan cash rent levels in spring 2007 were (see graph)
Additional details on land values and cash rents across the state are reported in Department of Agricultural Economics Reports, found on the Web at www.aec.msu.edu/agecon/aecreports/index.htm. To read the entire report prepared by MSU ag economists, visit the Michigan Farm Bureau site at http://www.michiganfarmbureau.com.
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