Farmland Values Continue to Rise

Article excerpt

The average value of Oklahoma farmland increased 4 percent to $438 an acre in the first quarter of 1989, marking the ninth consecutive quarterly increase.

The average was the highest since an average price of $459 in the fourth quarter of 1985, according to a survey from the Federal Reserve Bank of Kansas City.

The average value of Oklahoma farmland for the first quarter was up from $421 in the fourth quarter and up 11.7 percent from $392 per acre for the first quarter of 1988.

According to the survey by the Kansas City Federal Reserve Bank:

- Non-irrigated farmland in Oklahoma in the first quarter had a value of $425 per acre, up 2.4 percent from $415 in the fourth quarter and up 9.2 percent from $389 in the first quarter of 1988.

- Irrigated farmland had a first quarter value of $666 per acre, up 11.2 percent from $599 for the fourth quarter and up 20.2 percent from $551 in the first quarter of 1988.

- Ranchland had first quarter value of $225 per acre, down 9.6 percent from $249 in the fourth quarter and down 5.3 percent from $237 in the first quarter of 1988.

Western Oklahoma land is increasing in value more rapidly than land east of Oklahoma City, researchers said.

A bumper wheat crop and continued strong cattle prices helped boost land prices 1.8 percent in Oklahoma during the first quarter, according to the survey by the Federal Reserve Bank.

``We have seen prices go up on real good land. It depends on the location and who's interested,'' said Garfield County Agent Ron Robinson. ``We have seen a turnaround because sales have involved some real excellent farmland.''

According to Oklahoma State University farm economists, land values have appreciated most west of Oklahoma City. In the western half of the state, land values increased 5.7 percent during the past year. Land values increased only about 1 percent during the past year in the eastern half of Oklahoma.

The survey by the Federal Reserve found that irrigated farmland, which dominates in the western half of the state, rose nearly $200 per acre during the past two years.

The gain in farmland values, a trend that began more than two years ago following six years of decline, was less in Oklahoma than nearly any other state in the 10th Federal Reserve District, which includes Oklahoma, Kansas, Missouri, Nebraska, Colorado, New Mexico and Wyoming. …