The third quarter agricultural credit conditions report has been released from the Kansas City Federal Reserve Bank, which covers the region that includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico. Of interest from the quartly report always, is the report on farmland prices from the district.
As you can see from this current report chart (above) showing farmland price gains in percent change from the previous year, the three highest blocks are 1) nonirrigated (western) Missouri (up 27.2%), 2) irrigated Oklahoma (up 23.6%), and 3) nonirrigated Kansas (up 22.5%).
Much of recent-year farmland price appreciation has come from the lands that are best suited for growing cash crops of corn or soybeans, ever since the RFS ethanol mandate quickly drove up new demand for corn.
Could it be that we are now seeing a shift in demand for other types of farmland?
I don’t have the answer, as I’d need to see which lands have sold in those three states, but it would seem a logical and possible trend to watch going forward.