Irrigated cropland values surge, according to KC Fed

Federal Reserve Bank of Kansas City  |  Updated: 02/20/2013

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Persistent drought sparked a rush in irrigated farmland sales during the fourth quarter of 2012, according to the Federal Reserve Bank of Kansas City's quarterly Survey of Agricultural Credit Conditions.

Stronger sales vaulted irrigated cropland values in the seven-state Tenth District 30 percent above year-ago levels, with a 13 percent jump in the fourth quarter alone.

Farmers were the predominant buyers of farm real estate and placed a premium on irrigated land due to water scarcity stemming from drought. Non-irrigated cropland and ranchland also posted strong annual gains between 20 and 25 percent.

Farmland values rose with stronger-than-expected farm incomes. High pre-harvest crop prices lifted incomes, especially for farmers on irrigated land, while crop insurance payments compensated for yield losses on non-irrigated land.

A post-harvest decline in crop prices and strengthening cattle and hog prices improved livestock profitability as losses narrowed.

Higher farm incomes boosted capital spending and led to improved agricultural credit conditions. Expectations for capital spending in the coming months varied, as bankers surveyed generally expected that areas still experiencing drought would make fewer capital improvements in early 2013.

The complete survey is available at www.KansasCityFed.org/agcrsurv/agcrmain.htm.


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Steven Cark    
Arizona  |  February, 21, 2013 at 12:25 PM

I tried APSA 80 and Nutriplant on this very dry Arizona soil and got good results. Alfalfa increase in yield of 30%. My salesman, Scott Figura took a soil sample and first sent it off to an independent lab. He customized a protocol andthe water retention in the soil afterward was, to put it simply, amazing. I know, there are other surfactants out there but this one worked the best and held wate in the soil longer. Don't contact me, ask him to send you the results. His number is 505 259 5528. He is also helping with my Native American brothers farms in Northern Arizona, to bring an abandoned 300 acre farm back to life at Kayenta. He is very helpful.


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