Buyers paid more for Missouri farmland in 2023, according to the annual Missouri Farmland Values Opinion Survey from the University of Missouri Extension.
More than 300 responses were collected from Missouri lenders, farmers, rural appraisers, and others familiar with Missouri land values in October 2023. Survey respondents gave estimates of land values for three classes of cropland and pastureland (good, average, poor), irrigated cropland, timberland, and hunting/recreational land.
Values for cropland, pasture, timber and hunting/recreational land all increased from 2022 to 2023, according to survey results. Hunting/recreation land had the largest statewide increase of value at 14%, followed by “average” and “poor” pastureland, both with 11% increases from 2022.
This year’s respondents reported the statewide average of “good” nonirrigated cropland at $8,631 per acre, a $313 (4%) increase from 2022. The statewide average of irrigated cropland was estimated at $9,678 per acre, a $534 (6%) increase from 2022.
“Survey results from 2023 suggest that land values tend to be highest in the state’s urban areas and lowest in the south-central region,” said Juo-Han Tsay, MU Extension assistant professor and survey organizer. “Our results also indicate that, although cropland values increased in 2023, the percentage change was less pronounced than the 31% increase reported in our 2021-2022 survey.”
Respondents indicated rising interest rates applied downward pressure to farmland values; limited land available for sale and strong investor demand were indicated as factors pushing up the price of land in Missouri.
“Looking ahead, our survey respondents forecast land prices to increase in 2024,” said Tsay. “Interestingly, urban land prices are expected to increase the least, while land values in the western region of Missouri are estimated to increase anywhere from 11% to 14% next year.”
The Missouri Farmland Values Opinion Survey offers insights to landowners, potential buyers, and others involved in the agricultural industry. Because no government or public agencies in Missouri require the reporting of land sale transactions, it can be challenging to understand current prices and forward-looking projections for the state’s farmland values.
“The insights from our annual Missouri Farmland Values Opinion Survey are critical for a variety of programs and stakeholders, and we are excited to keep collecting responses each year,” said Ryan Milhollin, MU Extension agricultural economist. “Data from the annual Missouri Farmland Values Opinion Survey supplements state-level estimates published by USDA and can give stakeholders more clarity into the uniqueness of land value trends across Missouri.”
For more Missouri Farmland Value Opinion Survey results, including regional breakdowns and results from previous years, visit this link.