Frontier Farm Credit reports 2.2% increase in farmland values for the year
Farmland values increased in 2020 in eastern Kansas, driven largely by gains in the second half of the year. The COVID-19 pandemic shaped much of 2020, and farmland values were no exception. Historic low interest rates following the initial outbreak, higher grain prices and government ad-hoc payments supported a real estate market that has been generally stable the past few years.
Four of seven benchmark farms appraised by Frontier Farm Credit increased in value in the last six months of 2020. Values for the remaining three farms were unchanged.
STATE | Six Month | One Year | Five Years |
|---|---|---|---|
KANSAS (7) | 1.1% | 2.2% | 3.8% |
Many of the same factors that supported farmland values in 2020 remain in place, including low interest rates and opportunities to lock in profits.
“Significant improvement in net farm income, along with a favorable outlook for 2021, has continued to build on the favorable price momentum seen in the second half of 2020, with continued strengthening of real estate values anticipated through the remainder of the current sales season,” said Tim Koch, chief credit officer for Frontier Farm Credit.
Values in the neighboring states of Iowa and Nebraska also increased. Iowa’s farmland values increased 3.8% in 2020 and Nebraska’s 3.2%.
About Frontier Farm Credit
Frontier Farm Credit operates in alliance with Farm Credit Services of America to provide credit and insurance services to agriculture and rural communities in eastern Kansas. The association has nearly $2.6 billion in assets and $547 million in members’ equity. Learn more at frontierfarmcredit.com.