Friday, May 9, 2008

Cities in a Slump....Rural on the Rise


While the housing market is in a slump, rural land values continue to rise. Farm Real Estate Values Escalate According to Montana Ag Statistics, the value of non-irrigated cropland increased $100 to $730 per acre in 2007, compared with 2006. Pat Hansen, for the Montana Standard, continues....


The value of irrigated cropland was $3,700, an increase of $900 from 2006. Pasture values increased $200 to $850 per acre. Montana farm real estate values have been steadily increasing, and have more than doubled in the past three years.


In 2001 the average value of all farmlands was $350/acre and in 2006 it was $760/acre. Non-irrigated cropland was worth $355 in 2001, $370 in 2003 and $730 in 2007. Irrigated cropland was valued at $1,470 in 2001, $1,580 in 2003 and $3,700 in 2007. Pastureland more than tripled in value during the past five years from $240/acre to $850/acre.


The increase in farm real estate values is attributed to non-agricultural factors, including relative low interest rates and strong demand for non-agricultural land uses. Demand for farm real estate as an investment continues to be a strong market influence.
Search for MT Rural Lands at http://www.leaholson.com/

No comments: