A U.S. Department of Agriculture survey shows Oklahoma land values continued to increase this year.
From 2023-2024, the average value of farm real estate in Oklahoma rose 8.6% to $2,400 per acre, according to the survey. Farm real estate value is the value of all land and buildings used for agricultural production that could be sold under the current market conditions. USDA’s annual report shows this is the fourth year in a row the average value increased in the state.
Roger Sahs, enterprise budget and land values extension specialist with the Oklahoma State University Extension, said there are a number of factors leading to the increase such as earnings for producers, commodity prices and even recreational interest on pasture ground.
“Whether that plays a smaller or large part in its earnings, people enjoy the hunting component here in Oklahoma,” Sahs said.
He said the increasing land values is good for active established producers who already own larger amounts of land. But it can pose challenges for new farmers and ranchers.
“When you have rising land values and these high interest rates, it's essentially pricing them right out of the market,” Sahs said.
He said it’s difficult for new producers to finance something they can't reasonably afford. It takes established credit and a lot of money up-front to pay for increasingly expensive land on top of production expenses.
For a beginning producer, Sahs said it's hard to buy parcels of land on the market because of the cost. He said the Farm Service Agency exists to help producers make things a little more affordable.
Sahs said there has been a sizable long-term increase of agricultural real estate values over the years, and it could continue. But even though the past can help indicate the future, there’s no guaranteed growth.
Oklahoma is part of a nationwide trend. From 2023-2024, the average farm real estate value rose 5% to $4,170 per acre in the U.S.
Copyright 2024 KOSU
