The Federal Reserve Bank of Kansas, covering Colorado, Kansas, Nebraska, Oklahoma, Wyoming, New Mexico and parts of Missouri, reports that farm values rose by two percent in the first quarter of 2010.
Farm values rose because the demand for farm land in these states is high.
“Cropland values were above year-ago levels, driven primarily be farmer demand, as well as non-farm investors seeking higher rates of return,” the survey by The Fed said. “Ranch land values arose with improved profitability in the livestock sector.”
The survey gathered information from 262 banks in the 10th District. These banks expect the numbers to stay steady through the second quarter.
Farmers most commonly sought farm land, but investors purchased farm land as well. This is not a surprise as loan rates are at historic lows, as is property.
Crop land that is not irrigated rose by 2.8 percent and irrigated land increased by 2.5 percent. Ranch land increased by 1.6 percent as well.
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