Weak crop prices and strong cattle prices are affecting farmland values across the Upper Midwest and that's true in Kansas, too, a new study finds.
The report, from Kansas State University agricultural economist Mykel Taylor, finds that cropland values in the state are down 2.2 percent from a year ago, slipping to a new average of $2,210 per acre.
Taylor, who based her work on data from the U.S. Department of Agriculture, expects cropland values to continue to soften in coming months.
But average pasture values rose 6.9 percent from a year ago, to $1,390 per acre, reflecting historically high cattle prices, she says.
Both cropland and pastures vary widely across the state. That reflects many factors, including the amount of preciptation that different parts of Kansas receive, she says.
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Her report also found that farmland cash rental rates are dropping sharply. Not all farmers are paying less to rent land, but more will do so if crop prices remain low, she says.
Negotiations on expiring farmland rental agreements in the Upper Midwest will begin in earnest after harvest concludes this fall. Agweek's annual cover package on farmland rental rate trends in the Dakotas, Minnesota and Montana will be published in late November or early December.
