Missouri Land Value Survey Released
Landowners who purchased Missouri property in 2021 paid more for land than buyers who purchased land in 2020, according to the latest Missouri Farmland Values Opinion Survey report from University of Missouri Extension.
Agricultural economist Ray Massey, who led the survey, projects the upswing in land values will continue. He says higher land values will result in higher cash rental rates. Higher land values may also lead to an increase in the tax base, allowing communities to collect more revenue.
Conducted in September 2021, the land values survey collected responses from 88 Missouri lenders, farmers, rural appraisers and others familiar with Missouri land values. Values for cropland, pasture, timberland and hunting/recreational land all increased from 2020 to 2021.
The value of good non-irrigated Missouri cropland averaged $6,326 per acre in 2021 — an increase of 14% relative to 2020. Between 2017 and 2020, values for this cropland category annually increased 4.3% on average.
The state’s irrigated cropland averaged $7,132 per acre in 2021, an 11% increase from 2020.
Pastureland values were reported as a state average of $3,781 per acre. Compared with 2020, values grew by 12% in 2021.
Massey says several factors have driven cropland and pasture value changes, including high commodity prices, low interest rates and proximity to urban areas. In recent years, strong farm revenue contributed to increasing cropland values.
Land used for timber or hunting and recreation also increased in value in 2021. Missouri tracts used for hunting or recreation averaged $3,162 per acre in 2021 — an 18% year-over-year change. Values per acre averaged $2,048 in 2017, and they increased by $1,114 per acre in the past five years.
In 2021, Missouri timberland values averaged $3,070 per acre, which was 17% higher than 2020 values.
According to Massey, the value of timberland or hunting land rose as commodity prices and investment earnings increased in 2020. For example, out-of-town investors who earn positive returns on their investments are able to purchase land for recreational purposes.
