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Revised March 2009

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G404, Farm Land Values

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Farm Land Values

Land valuesRonald L. Plain
Department of Agricultural Economics
Joyce White
Project coordinator

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*

Year 48 contiguous states Missouri Iowa Illinois
1912 $42 $53 $104 $115
1913 $43 $54 $108 $119
1914 $44 $56 $113 $123
1915 $43 $55 $121 $121
1916 $46 $58 $137 $124
1917 $49 $61 $143 $131
1918 $53 $66 $155 $140
1919 $58 $72 $171 $153
1920 $69 $88 $227 $188
1921 $65 $83 $210 $181
1922 $57 $71 $174 $149
1923 $56 $69 $168 $146
1924 $54 $63 $155 $137
1925 $54 $61 $149 $137
1926 $52 $57 $142 $130
1927 $50 $55 $132 $118
1928 $49 $54 $129 $114
1929 $49 $54 $128x $113
1930 $49 $53 $124 $109
1931 $44 $46 $109 $96
1932 $37 $39 $89 $79
1933 $30 $32 $65 $65
1934 $31 $33 $70 $70
1935 $32 $33 $73 $72
1936 $32 $34 $79 $75
1937 $33 $34 $79 $79
1938 $33 $33 $80 $81
1939 $32 $31 $78 $80
1940 $32 $32 $79 $82
1941 $32 $32 $79 $83
1942 $34 $35 $84 $94
1943 $38 $39 $91 $98
1944 $43 $43 $105 $113
1945 $47 $48 $111 $121
1946 $53 $53 $124 $134
1947 $60 $59 $138 $153
1948 $64 $60 $154 $162
1949 $66 $64 $158 $170
1950 $65 $64 $161 $174
1951 $75 $75 $188 $204
1952 $82 $85 $199 $221
1953 $83 $82 $194 $226
1954 $82 $79 $192 $230
1955 $85 $82 $203 $234
1956 $91 $87 $209 $248
1957 $97 $94 $221 $275
1958 $103 $102 $230 $283
1959 $111 $110 $248 $311
1960 $117 $115 $257 $316
1961 $118 $120 $242 $306
1962 $124 $127 $251 $315
1963 $130 $132 $256 $332
1964 $138 $145 $265 $349
1965 $146 $155 $279 $372
1966 $158 $168 $310 $420
1967 $168 $186 $346 $449
1968 $179 $200 $365 $470
1969 $188 $217 $382 $493
1970 $196 $224 $392 $490
1971 $204 $236 $392 $494
1972 $219 $261 $414 $522
1973 $246 $294 $466 $567
1974 $302 $384 $597 $720
1975 $340 $396 $719 $846
1976 $385 $446 $903 $1,052
1977 $474 $548 $1,259 $1,458
1978 $531 $641 $1,331 $1,625
1979 $628 $726 $1,550 $1,858
1980 $737 $902 $1,840 $2,041
1981 $819 $990 $1999 $2,188
1982 $823 $945 $1,889 $2,023
1983 $788 $856 $1,684 $1,837
1984 $801 $875 $1,518 $1,845
1985 $713 $689 $1,091 $1,381
1986 $640 $648 $873 $1,232
1987 $599 $604 $786 $1,149
1988 $632 $640 $947 $1,262
1989 $668 $684 $1,095 $1,391
*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 settlements, business accounting) individuals sometimes need to determine the value of a specific piece of farmland at some point in the past. Occasionally they are lucky enough to find previous appraisals or sales records that allow them to establish a 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. Tables 1 and 2 give the USDA’s annual estimates of the average value of farm real estate for Missouri and surrounding states. MU Extension Publication G403, Farm Land Values for Missouri Counties, gives values for individual Missouri counties for every fifth year as reported in the Census of Agriculture.
  • Second, obtain an appraisal of the current market value of the land in question. This valuation should not include any recently constructed structures or potential development value.
  • Third, use the information in the historical series to calculate how much the value has changed over time. For example, Table 2 above indicates that an average acre of Missouri farm real estate was worth $902 per acre in 1980, $1,230 in 2000, and $2,300 in 2008. Thus the value in 1980 was 39.22 percent of the value in 2008 ($902 ÷ $2,300). The average value in 2000 was 53.48 percent of the 2008 value ($1,230 ÷ $2,300), etc.
  • Fourth, multiply the current appraised value of the individual tract by the percentage change in average Missouri value between the year you wish to estimate and the year of the appraisal. For example, if the tract is appraised at $2,800 in 2008, then in 2000 its value would have been approximately $1,497.44 ($2,800 x 53.48 percent).
  • Fifth, adjust the calculated value for any non-farming impact on value over the time period of the calculations. Urban development, local regulations, etc., may have caused land values in a specific area to change more or less than the Missouri average.

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
2008 $2170 $2,300 $3,950 $4,550 $2,850 $3,450 $2,420 $1,150 $1,020 $1,330

 

G404, revised March 2009

G404 Farm Land Values | University of Missouri Extension