Urban Pressures Keep Ohio Farmland Values Strong
COLUMBUS, Ohio Despite
farm Gnancial troubles in Mid
western states, duo’s farmland
values should enter the year 2000
in pretty good shape, said an Ohio
Slate University agricultural
economist.
Allan Lines projects that Ohio
farmland values will stay steady or
possibly increase a little compared
to faltering prices elsewhere in
farm belt states this past year.
Ohio farmland values should
enter the new millennium at
$2,100 per acre, which would be
about the same as at the beginning
of 1999, Lines said. That would
also cap a decade of continued
strength in Ohio farmland values.
Lines’ projected price for the year
2000 would be a 59 percent
increase from the 1991 price of
$1,323 per acre.
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The performance of Ohio farm
land values is more in line with
trends in the Eastern United States
where rural land values reflect
pressures of urban and non-farm
development. Lines said. “There’s
a higher intensity in Ohio for non
farm development than in states to
the west,” Lines said. “It is more
localized out there than in this
state. The non-farm populations
are not as distributed across those
states as in Ohio.
“You have a clear definition out
west about what is urban fringe
and what is deep farm country,”
Lines said. “There are hardly any
places in this state where you can
say this is raw, raw farm country
without urban pressure.”
Lines admits the relatively opti
mistic mood of Ohio farmers at
land auctions creates a confusing
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“What does this say about the
farm economy in Ohio in compari
son to other states?” Lines asked.
“Can we say our farm economy is
in worse shape than theirs? You
wouldn’t think so.”
The strength of Ohio’s farmland
values ate a stark contrast to the
Great Plains where prices for good
wheat ground recently dipped by
11 percent to 15 percent. Lines
said.
Closer to home, the price for
average-yielding com ground in
Indiana dipped to $2,092 per acre,
a decline of 2.9 percent from last
year’s per-acre value of $2,155,
according to Purdue University
agricultural economists.
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Lines bases his judgment of
Ohio land prices on feedback from
auctions around the state. He is
hearing reports of prime farmland
selling for $3,000 per acre, and
prices in the
$4,000-to-$5,000-per-acre range
are not unheard of, he said.
Still, not all farmers can bank on
such hefty prices. Lines said.
There is some evidence that farm
land prices have dropped in some
areas along the drought-distressed
corridor of Interstate 70 as well as
in hard-hit regions of southern
Ohio, he said.
Farmland values based on non
farm development have implica
tions for agricultural land rental
rates, too. Lines said. Rental rates
'/here's your mustache? ’
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Lancaster Count'
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don't seem to have declined as one
might expect, he said. A usual rela
tionship put rent at 5 percent to 7
percent of the cash value ol the
land.
If Ohio farmland value trends
hold out, it will be easier for estab
lished farmers to get out of farm
ing, and harder for others who
want to buy land to get into farm
ing or to expand their operations in
order to stay in farming.
“Farmers are going to be forced
to pay higher land prices than what
they are used to,” Lines said.
“What it does is put a burden on
those who want to enter agricul
ture, but it’s a godsend for those
who own land and are holding on
to it”
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