Kansas land values have experienced consistent growth in all sectors, as reported by the USDA National Agricultural Statistics Service. Since 2020, irrigated land values have seen an annual increase of 11%, dryland values have risen by 22% per year, and pasture values have grown by 18% annually. Despite these upward trends, Kansas cropland remains relatively affordable compared to other states, with an average price of $2,950 per acre in 2022, marking a 24.5% rise since 2022.
During a webinar in April, Robin Reid, a farm economist from Kansas State University Extension, highlighted the resilience of farm income, even in the face of ongoing challenges such as drought concerns and high input costs. Farmers are also contending with rising interest rates, increased inflation, and competition from non-agricultural investments. While land values are projected to continue rising, the rate of increase is expected to moderate, leading to smaller farm profit margins.
Several recent land sales in different counties illustrate the market trends in Kansas:
Edwards County: Approximately 160 acres of dryland in Edwards County were sold at auction on April 24, fetching a price of $1,400 per acre. The Urban family was the seller, and Carr Auction & Real Estate Inc. facilitated the sale.
Decatur County: A total of 480 acres of cropland and grass in Decatur County were sold in three tracts at an auction on May 9. Tract 1, comprising 160 acres of wheat stubble, cornstalks, and grass, sold for $2,700 per acre. Tract 2, encompassing 160 acres primarily of cornstalks, fetched $2,900 per acre. Tract 3, consisting of 160 acres of wheat stubble and cornstalks, sold for $1,700 per acre. The seller was DeMay Enterprises, and Farm & Ranch Realty Inc. facilitated the sale.
Russell County: On May 2, approximately 1,200 acres of land in Russell County were sold at auction. This land, known for its hunting opportunities and productive cropland and pasture, was divided into five tracts.
These recent sales reflect the ongoing trend of increasing land values in Kansas, indicating the overall positive market outlook for agricultural land in the state.
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Categories: Kansas, Business