| Even in the face of low crop prices, the price of Michigan
farmland rose steadily in 2000, according to an annual land value
survey conducted by the Department of Agricultural Economics at
Michigan State University.
However, researchers said, that trend may not continue if the
economy weakens further.
"There are clear signs that growth in the general economy is
rapidly slowing," agricultural economists Gerry Schwab and
Steve Hanson wrote in the report. "As nonfarm income growth
slows, the demand for farmland to transition to nonagricultural uses
such as residential development, recreational uses and commercial
development will soften."
They found the value of tiled field cropland -- meaning that it
has drainage tile -- rose to $1,729 per acre, up 9.2 percent from
the previous year's survey. Untiled land rose 8.7 percent to $1,459.
This marked the 14th consecutive year of increases in Michigan
farmland values.
Land used to grow sugar beets and irrigated land rose by smaller
percentages. Sugar beet land was pegged at $1,913 per acre, up 2.5
percent, and irrigated land was at $2,175 per acre, up 6.5 percent.
Rental values of land changed little last year, the report shows.
Cash rents averaged $78 per acre for tiled land, $55 for untiled
land, $119 for sugar beet land and $135 for irrigated land.
Operators lease about 46 percent of Michigan crop acres. |