YOUR TEXAS AGRICULTURE MINUTE
Texas sees uptick in agricultural land values
By Gary Joiner
The U.S. Department of Agriculture has released its 2020 Land Values report.
The average value of Texas agricultural land, including buildings, is up 2.4 percent this year at $2,170 per acre.
The average cash rent for Texas cropland is $43, an increase of one percent from a year ago.
The increased values in Texas are in contrast to the same figures for the entire U.S. Those average values from across the country are either unchanged or are lower from 2019’s record highs.
The average value of U.S. cropland, including all land and buildings on farms, was $3,160 per acre for 2020. Cash rental rates for U.S. cropland averaged $139 per acre in 2020.
Economists with the American Farm Bureau Federation say the stability in agricultural land values and cash rents occurs amid continued pressure on farm income and commodity prices.
Many had expected to see some downward pressure on those values. But that’s not been the case. Low interest rates continue to make agricultural land an attractive investment.
In addition to low interest rates and a low turnover of agricultural land, individuals, large-scale investors, estates, trusts and other institutional owners continue to invest in farmland.
Other factors likely bolstering land values and cash rents are Market Facilitation Program payments, designed to help farmers recover from retaliatory tariffs, and ad hoc disaster aid to help producers impacted by wildfires, hurricanes and flooding in recent years. Farmers receiving this aid are more likely to hold onto cash rental agreements.
The preceding commentary is brought to you by Texas Farm Bureau, the “Voice of Texas Agriculture.” Called “Your Texas Agriculture Minute,” TFB will issue thought-provoking editorials each week—via print and audio—to spark understanding of agriculture in the Lone Star State and its impact on each and every Texan.
Media outlets: This content may be used without further permission.