MONROE - If there's one bright spot on the current economic landscape, it's the price of farmland - the value of ag land in Wisconsin grew by 18 percent last year.
The total value of agricultural land and buildings rose to almost $58 billion in the state in 2007, according to figures released earlier this month by the National Agricultural Statistics Service. Across the country, farm real estate values were up 8.8 percent in 2007, according to the USDA.
Local observers of the agriculture industry have noticed similar growth here.
The price for agriculture land without buildings in Green County sold for agricultural use went from $3,237 in 2005 to $3,401 per acre in 2006 to $3,626 in 2007, according to Mark Mayer, Green County agriculture agent. He expects that pace to continue for 2008.
Nationally, the average for land and buildings on farms averaged $2,350 as of Jan. 1, the USDA reports.
Glen Marass, vice president of the Bank of Juda, said he's noticed prices have been up in the area. He's heard of a recent transaction where land went for $4,000 per acre.
"A few years ago, it was going for $3,500 - we thought that was astounding," he said.
Ekum Abstract and Title in Monroe is recording sales of tillable land at $4,500 per acre and even higher in some instances, owner Rick Maliszewski said. Prices for land intended for development is reaching $10,000 per acre, he said.
That's a "substantial" increase in prices for tillable land in recent years, Maliszewski said. Prices have "escalated a little more this year," and growth over the past three years has been the best it's been in the past decade, he noted.
But higher land values aren't always a good thing. While it benefits older farmers who are looking to retire and sell their land, it's hard enough to get into the capital-intensive business.
"For many, their land is their retirement account," Mayer said of established farmers. "On the other hand, high land prices make it very difficult for younger farmers to get started in farming. Both the high cost of the land and the corresponding land rental rates make it difficult for a young person to start without some financial help from their family."
The Farm Service Agency has beginning farmer loans with attractive terms to help those trying to get established, Mayer added.
Many farmers may be happy to hear the current trend is for land to be purchased by local farmers trying to expand their operations. A few years ago, much of the land being sold was purchased by out-of-state investors, Maliszewski said.
"Local buyers are probably encouraged or enticed by high prices of corn," Maliszewski said.
And that's a good sign for the local economy.
"The ag industry is very important here," Maliszewski said. "It's keeping our economy stable compared to other economies in the Midwest."
The total value of agricultural land and buildings rose to almost $58 billion in the state in 2007, according to figures released earlier this month by the National Agricultural Statistics Service. Across the country, farm real estate values were up 8.8 percent in 2007, according to the USDA.
Local observers of the agriculture industry have noticed similar growth here.
The price for agriculture land without buildings in Green County sold for agricultural use went from $3,237 in 2005 to $3,401 per acre in 2006 to $3,626 in 2007, according to Mark Mayer, Green County agriculture agent. He expects that pace to continue for 2008.
Nationally, the average for land and buildings on farms averaged $2,350 as of Jan. 1, the USDA reports.
Glen Marass, vice president of the Bank of Juda, said he's noticed prices have been up in the area. He's heard of a recent transaction where land went for $4,000 per acre.
"A few years ago, it was going for $3,500 - we thought that was astounding," he said.
Ekum Abstract and Title in Monroe is recording sales of tillable land at $4,500 per acre and even higher in some instances, owner Rick Maliszewski said. Prices for land intended for development is reaching $10,000 per acre, he said.
That's a "substantial" increase in prices for tillable land in recent years, Maliszewski said. Prices have "escalated a little more this year," and growth over the past three years has been the best it's been in the past decade, he noted.
But higher land values aren't always a good thing. While it benefits older farmers who are looking to retire and sell their land, it's hard enough to get into the capital-intensive business.
"For many, their land is their retirement account," Mayer said of established farmers. "On the other hand, high land prices make it very difficult for younger farmers to get started in farming. Both the high cost of the land and the corresponding land rental rates make it difficult for a young person to start without some financial help from their family."
The Farm Service Agency has beginning farmer loans with attractive terms to help those trying to get established, Mayer added.
Many farmers may be happy to hear the current trend is for land to be purchased by local farmers trying to expand their operations. A few years ago, much of the land being sold was purchased by out-of-state investors, Maliszewski said.
"Local buyers are probably encouraged or enticed by high prices of corn," Maliszewski said.
And that's a good sign for the local economy.
"The ag industry is very important here," Maliszewski said. "It's keeping our economy stable compared to other economies in the Midwest."