Agricultural Survey

Quarterly comments

District bankers were asked for additional comments concerning agricultural land values and credit conditions. These comments have been edited for publication.

• Conditions are very dry.

• Loans reported are not typical, but sales are in special cases (family, etc.) There has been almost no activity in the area.
• [There have been] three consecutive years of drought on the South Plains. [It’s been] another terrible crop year. Grazing is short where it even exists. Still, producers have made up for it with good insurance coverage. Land prices are holding up with little land on the market. Cattle prices are finally catching up.

• We have had no rain since mid-July. We are extremely dry. We will have a late start to planting wheat. Stock water is becoming a big concern for cow calf producers.

• The combination of extreme heat and wind have dried out our area. Cotton, grain sorghum and summer hay are very weak in most of our area. Cattle are doing good considering the conditions. Prices are at all-time highs, but liquidations will start soon due to lack of grass and water.

• Land in our area is selling at $50,000 to $100,000 per acre for 30-to-50-acre tracts with plenty of comparables. If you find $20,000 price per acre, it would be a bargain for large tracts. Conventional agricultural use of land in our county and surrounding counties is on its way out.

• Pasture conditions are very dry with very hot conditions for the past couple of months. Calf, lamb and kid goat prices remain very good, especially considering the increasing drought conditions. Decisions on retaining breeding livestock are being made, with most trying to hold on to them, hoping for rains soon. Most agricultural real estate sales are for recreational purposes.

• [It’s been a] very dry summer, resulting in significant drought conditions. Some areas are beginning to see late summer, early fall rains. Growing season is coming to an end. Harvest operations of corn silage, cotton and alfalfa are started and continuing through October. Cattle prices are very good. Many dairies are beefing quality milk cows with remaining life.

Charts

What changes occurred in non-real-estate farm loans at your bank in the past three months compared with a year earlier?

What changes occurred in the volume of farm loans made by your bank in the past three months compared with a year earlier?

What trend in farmland values do you expect in your area in the next three months?

What change occurred in credit standards for agricultural loans at your bank in the past three months compared with a year earlier?

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