Northwest Ag Land Values Stable to Increasing

Northwest Ag Land Values Stable to Increasing

I’m KayDee Gilkey with the Northwest Farm and Ranch Report.

The demand for good quality agricultural lands remains strong in the Pacific Northwest. Roger Cramer, Northwest Farm Credit Services Senior Vice President of Risk Management, gives an overview of Farm Credit’s twice yearly land survey.

Cramer: “Overall land values trends are stable to increasing on good quality ag land. High commodity prices and low interest rates have been the major factors that have driven the expansion which has also included increasing rents. The majority of the interest in the land sales that have occurred from local producers that are looking to expand operations and their land base. There have been some interest from institutional buyers but it is far outweighed by the interest from farmers.”

Cramer says in Idaho land values appear to be stable to strong across the majority of the state. Historically high commodity prices continue to fuel optimism with buyers typically being well-established farmers. Some areas in Idaho are reporting large increases in land values and rents.

In Oregon demand for good quality ag land remains high in many areas. Favorable commodity prices for many crops grown in Oregon have increased market activity and demand from ag producers.

Sale prices for many land classes in Washington are at record levels with landowners testing the upper limit that buyers are willing to pay for good quality properties.

I’m KayDee Gilkey with the Northwest Farm and Ranch Report on the Northwest Ag Information Network.