close window

Daily Email Update

Stay informed. Sign up for Farm Equipment's Daily News Email.

Dueling Combines

John Deere 893 Stock Corn Head vs. John Deere 893 upgraded with Calmer Trash Reduction Kit. View it!

Sign up for E-Watch!

 

Register Today!

Ag Facts

Farmland Values Often
Deviate from Agricultural Use Value

Source: USDA

November 25, 2012 — In many areas today, farmland values are influenced by factors other than agricultural productivity, such as urban influence and natural or rural amenities.

The capitalized value of expected rents (rental rate divided by 10-year Treasury note) is a broad indicator of the amount of farmland value due to agricultural use. When the ratio of farmland values to capitalized rents exceeds 1.0, it suggests a deviation between the market value of farmland and its implied agricultural use value.

In states such as Florida and New Jersey, cropland values greatly exceed their implied agricultural use value. In more rural states such as South Dakota, cropland values are mostly determined by agricultural use. This map can be found in the ERS report, Agricultural Resources and Environmental Indicators, 2012 Edition, EIB-98, August 2012.

Farmland values

See more ERS Charts of Note

Posted November 21, 2012
COMMENTS: 0

Post comment / Discuss story * Required Fields
Your name:
E-mail *:
Subject:
Comment *:
Please enter the characters that you see in the field below.
Verification:
Verification 

© 2014. Lessiter Publications and Farm Equipment. 225 Regency Court, Suite 200, Brookfield, WI, 53045. PHONE: (800) 645-8455, E-MAIL: info@lesspub.com.
Website Development by Envision IT