Farm and Ranch Values and Sales by John Knipe, Board Certified Land Broker

(BOISE, IDAHO) The Department of Interior’s United States Department of Agriculture (USDA) completed its report entitled “Land Values 2013 Summary”. The report was created and released a few weeks ago through the USDA’s – National Agricultural Statistics Service. According to John Knipe, Farm and Ranch Broker and President of Knipe Land Company, “The report looked at farm real estate values, cropland values, and pastureland values in comparison from 2012 to 2013.”

Farm real estate values, according to this USDA report, increased in Idaho (+3.8%), Oregon (+2.4%), California (+1.4%), Washington (+2.2%), and Montana (+3.9%) from 2012 to 2013. The report also demonstrates that the average farm real estate value across the entire United States averaged $2,900 per acre. The report defines “farm real estate values” as a measurement of value of all land and buildings on a farm. The national farm real estate value average demonstrates an increase in value of 9.4 percent over values of farm real estate in 2012. Values of farm real estate vary location to location, region to region and area to area but the report demonstrates average values for the United States. States in the Southwestern United States shows no change in value. States in the Northern Plains, on the other hand, she an increase in value equal to over 23 percent over values in 2012, according the report. The lowest values for farm real estate were in the Mountain States, with an average per price acre of just over $1,000 an acre. Corn Belt States had the highest values in farm real estate values. The average price per acre of farm real estate in these states averaged $6,400 per acre, the study and report found.

Cropland values increased in Idaho (+5.5%), Oregon (+4.4%), California (+3.9%), Washington (+12.1%), and Montana (+4.2%). Cropland values, on average across the United States, showed a stronger gain in value. Cropland values increased 13 percent from 2012 to 2013, which is an increase of $460 per acre, rising to an national average of $4,000 per acre. Southeast States saw a decrease in 2013 cropland values, with a loss in value of 2.8 percent. In contrast, the Corn Belt States saw increase in cropland values of over 16 percent in 2012 and another increase of 25 percent in 2013.

Pasture values increased in Oregon (+9.7%), Washington (+1.2%), and Montana (+1.8%). Values in Idaho and California showed no change in value. Pasture values in the United States increased by 4.3 percent from 2012 to 2013 to a national average of $1,200 per acre. Pasture values decreased from 2012 to 2013 in the Southeastern States with a loss of 1.5 percent. Northern Plain States showed the strongest gain. Pasture values in these states increased over 18 percent in 2013, according to the USDA report.

Knipe Land Company also completed a Mid-year farm, ranch and land market analysis in the Pacific Northwest. Specific counties in Idaho, Oregon and Washington were considered for this report. The company looked at over 2,000 farms and ranches and land parcels being marketed that are 40 acres and larger, actively on the market between January 1, 2013 through August 31, 2013. 338 farms and ranches were sold and closed. 2,266 Farms and ranches were listed during this time and offered for sale in these three States. “15 Percent of the farms and ranches on the market have sold and closed, so far this year”, according to John Knipe, President of Knipe Land Company. “Of the three states included in the Pacific Northwest study, Idaho has had the strongest percentage of closed farm and ranch and land sales so far this year”, Knipe said. “Idaho is seeing about 1 closed sale for every 5 farms and ranches listed in the first 9 months of the year”. At the time the study was done, Knipe ranked #25 based on closed sales volume when ranked against all other Realtors in the Intermountain MLS. The Intermountain MLS has just under 4,000 Realtors and includes many Realtors in Central Idaho, Southwestern Idaho and Eastern Oregon. “Most farm and ranch sales seem to happen closer to the end of the year, between production periods, so we are hopeful of seeing the year ending with even stronger numbers across Idaho, Oregon and Washington,” Knipe said. Knipe Land Company and Knipe Land North, LLC, market, sell and professional manage farms, ranches, timber and land in Idaho, Oregon, Washington, and Montana.

ABOUT THE AUTHOR: Knipe Land Company traces its roots back to 1944, when it first opened its doors in Nampa Idaho making the company one of the oldest run real estate companies in Idaho and the Western United States. John Knipe is a Past President of the Idaho Realtors Land Institute, Past Regional Vice President of the National Association of Realtors – Realtors Land Institute, serves as President of the World Organization Land Federation and Executive Vice President of the American Land Institute. Knipe has won over a dozen advanced marketing awards from the National Association of Realtors and his company was selected awarded one of the Best Brokerages in the United States by the Land Report Magazine. Knipe has written courses and books on farm, ranch and land brokerage and land development and is a Senior Real Estate Instructor with the World Organization Land Federation. For assistance in purchase or selling a farm, ranch or highly appreciated real estate asset, contact Knipe at (208) 345-3163 or john@knipeland.com Visit his company on the world wide web at www.knipeland.com At the end of August 2013 when these studies were created, based on closed sales volume when ranked against all the other Realtors in the Intermountain MLS, Knipe ranked 25th in highest closed sales volume. In 2012, Knipe ranked 16th for closed sales volume when ranked against all other Realtors in the Intermountain MLS for that year.

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