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  • By Lynda Kiernan-Stone, Global AgInvesting Media

Low Grain Prices Affecting Land Values Across Upper Midwest

Low grain prices are resulting in a shift in cropland values across the Upper Midwest, a trend also playing out in the state of Kansas according to a new study from Kansas State University (KSU).

Using data from the U.S. Department of Agriculture (USDA), the report, headed by agricultural economist, Mykel Taylor of KSU, found that cropland values in Kansas have fallen 2.2% year on year, falling to a new average value of $2,210 per acre, while values of pasture land in the state have climbed 6.9% year on year to a value of $1,390 per acre due to record high cattle prices.

The report also indicated that cash rents across the state are falling sharply, with a higher percentage of farmers stating that they will negotiate for lower rents when forming new rental agreements this fall after harvest if crop prices remain low.

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