LITITZ U.S. farmland values
increased an average of 9.3 per
cent during the year ending
February 1,1981, well below the 1&-
percent increase of a year ago, and
less than the 11-percent rise m the
Consumer Price Index over the
same period.
Since land prices increased more
slowly than the CPI, the real value
Farm real estate values climb at slower rate
of farmland declined. The last such
decline occurred in the year ending
March 1,1971.
The 1980 drop in the real value of
farmland reflected a decrease in
net farm mcome from $3l billion in
1979 to $23 billion in 1980. High
interest rates and tight credit also
affected the farm real estate
market.
Pennsylvania land was up 13
percent on an average.
The largest mcreases in far
mland values occurred in
Mississippi, up 27 percent, and
California, up 22 percent.
Alabama, Louisiana, and
Washington each showed an in
crease of 18 percent. Only 11 of 48
states showed mcreases that
Lancaster Farming, Saturday, April 18; 1981—PIS
matched or exceeded the rate of
inflation. *
The national average value of
farm real estate is now $790 per
acre. However, farmland is worth
an average of almost $3OOO an acre
in New Jersey, and the average
exceeds $2OOO in four other states.
Transfers of farm real estate
number 9 percent fewer m 1980
than in 1979 Voluntary sales of
farm real estate declined 14 per
cent. The rate of foreclosures
increased from 1.1 per 1,000 farms
to 1.3.
The farm real estate market is
expected to pick up in 1981 as In
terest rates decline and net farm
income rebounds. From February
1981 to February 1962, land values
are expected to increase between
11 and 16 percent.
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