Farm Real Estate Values Up From Last Year

The USDA says farm real estate values are higher than last year.  From 2017, the value of farms, including land and buildings, is up $60 an acre, according to USDA Deputy Chief Economist Warren Preston.  But there’s surprisingly little movement on cash rents, said Preston.

“Cropland cash rents increased just a dollar an acre from $137 per acre last year up to $138 per acre for all acreage in 2018,” said Preston, in an interview provided by the USDA.

Producers have also been spending more to operate farms.  Preston cites a separate USDA report that farm production spending was higher this past year.

“Farm production expenditures in the U.S. are estimated at almost $360 billion for 2017,” said Preston, “and that’s up from almost $345 billion in 2016.”

The largest 2017 spending increase was on feed, according to agency data, which is up more than 15 percent from the previous year.

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