Revised August 2007

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• Estimating past values for farmland

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• G403, Farm Land Values for Missouri Counties

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Farm Land Values

Ronald L. Plain
Department of Agricultural Economics

The U.S. Department of Agriculture’s National Agricultural Statistics Service (USDA/NASS) conducts a survey of farm real estate values each year. The following tables show the average farm land values for the 48 contiguous states, Missouri and neighboring states as calculated from these surveys.

Table 1
Average farm real estate values (land and buildings) per acre, 1912 to 1989*

*As of March 1 before 1976; as of Feb. 1, 1976 to 1981 and 1986 to 1989; as of April 1, 1982 to 1985.

Estimating past values for farmland

For a variety of reasons (income taxes, estate settlement, business accounting) individuals sometimes find they need to determine the value of farmland at some point in the past. Occasionally, these individuals are lucky enough to find actual appraisals or sales records that allow them to establish the value. More often, they must start with a current valuation and project backward to estimate the past value.

There are five steps in making a backward projection of land value.

• First, obtain a series of historical values for farmland. Table 1 gives USDA annual estimates of the average value of farmland in Missouri and in adjoining states as well as the average for the 48 contiguous states since 1912. USDA updates this land value series annually.
• Second, obtain an appraisal of the current market value of the land in question. This valuation should be made independent of recently constructed structures and the development potential of the land.
• Third, use the information in the historical land value series to determine the value of farmland in the past relative to its present value. For example, the USDA land value series indicates that an average acre of Missouri farmland was worth $902/acre in 1980, $701 in 1990, $1230 in 2000, and $2280 in 2007. Thus, 1980 land values in Missouri averaged 39.56 percent of 2007 values ($902 4 $2280). Missouri land values in 1990 averaged 30.75 percent of 2007 values ($701 4 $2280). The average value in 2000 was 53.95 percent of the 2007 value ($1230 4 $2280).
• Fourth, multiply the current value of the land by the appropriate percentage for the past year you desire to estimate. For example an acre of Missouri land that was worth $2800 in 2007 should have been worth approximately $1510.60 in 2000 ($2800 3 53.95 percent); $861 in 1990 ($2800 3 30.75 percent), and $1107.68 in 1980 ($2800 3 39.56 percent).
• Fifth, adjust for any nonfarm impact on the land’s value. For example, if the land is located close to a rapidly growing city, its value has probably increased faster than the average for Missouri farmland.

Table 2
Average farm real estate value (land and buildings) per acre, Jan. 1, 1990 to 2007. (48 contiguous states, Missouri and states bordering Missouri)

Year	48 states	Missouri	Iowa	Illinois	Kentucky	Tennessee	Arkansas	Oklahoma	Kansas	Nebraska
1990	$683	$701	$1,090	$1,405	$978	$1,067	$796	$491	$450	$524
1991	$703	$723	$1,139	$1,459	$958	$1,095	$841	$477	$449	$517
1992	$713	$734	$1,153	$1,536	$988	$1,130	$815	$482	$460	$517
1993	$736	$774	$1,212	$1,548	$1,077	$1,245	$880	$496	$463	$514
1994	$798	$825	$1,280	$1,670	$1,140	$1,250	$927	$517	$503	$550
1995	$844	$880	$1,350	$1,820	$1,250	$1,340	$983	$547	$535	$580
1996	$887	$950	$1,450	$1,900	$1,300	$1,530	$1,010	$547	$553	$610
1997	$926	$1,010	$1,600	$1,980	$1,350	$1,650	$1,070	$570	$565	$620
1998	$974	$1,070	$1,700	$2,130	$1,450	$1,810	$1,150	$610	$577	$645
1999	$1,030	$1,150	$1,760	$2,220	$1,550	$1,950	$1,220	$625	$600	$675
2000	$1,090	$1,230	$1,800	$2,260	$1,650	$2,100	$1,290	$640	$625	$710
2001	$1,150	$1,300	$1,850	$2,290	$1,750	$2,200	$1,350	$655	$645	$735
2002	$1,210	$1,380	$1,920	$2,350	$1,830	$2,300	$1,410	$680	$665	$760
2003	$1,270	$1,470	$2,010	$2,430	$1,900	$2,400	$1,480	$705	$685	$775
2004	$1,360	$1,580	$2,200	$2,610	$2,000	$2,500	$1,650	$745	$715	$825
2005	$1,650	$1.790	$2,650	$3,330	$2,500	$2,850	$1,870	$900	$850	$940
2006	$1,900	$1,980	$2,930	$3,800	$2,750	$3,070	$2,050	$970	$940	$1,090
2007	$2,160	$2,280	$3,400	$4,300	$2,850	$3,400	$2,300	$1,080	$1,090	$1,230

G404, revised August 2007