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Group Title: Department of Food and Resource Economics publication FE439
Title: Agricultural land values increase
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Permanent Link: http://ufdc.ufl.edu/UF00066716/00001
 Material Information
Title: Agricultural land values increase 2003 survey results
Alternate Title: EDIS FE439
Physical Description: Book
Language: English
Creator: Reynolds, John E ( John Everett )
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, EDIS
Place of Publication: Gainesville Fla.
Publication Date: [2003]-
 Subjects
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Summary: The 2003 Florida Land Value Survey results indicate that the value of agricultural land increased in all regions of the state during the past year. Survey respondents indicated that the increases in the value of agricultural lands were primarily due to a strong nonagricultural demand for land. The value of citrus land increased after declines for the past two years. Agricultural land values vary by the type of land use and geographic area.
Bibliography: Includes bibliographical references.
System Details: Internet access required.
Statement of Responsibility: John E. Reynolds.
General Note: Title from Web page viewed on December 3, 2003.
General Note: At head of title: University of Florida, Cooperative Extension Service, Institute of Food and Agricultural Sciences, EDIS.
General Note: "This is EDIS document FE439, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, UF/IFAS, University of Florida, Gainesville, FL. Published November 2003."--Footnote.
Funding: Florida Historical Agriculture and Rural Life
 Record Information
Bibliographic ID: UF00066716
Volume ID: VID00001
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: aleph - 002977032
oclc - 53834545
notis - APL8811

Table of Contents
    Agricultural land values increase: 2003 survey results
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    Agricultural land values increase: 2003 survey results
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    Agricultural land values increase: 2003 survey results
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Full Text










Florida Food and Resource Economics


Agricultural Land Values Increase:
2003 Survey Results

John E. Reynolds


The 2003 Florida Land Value Survey results
indicate that the value of agricultural land
increased in all regions of the state during the
past year. Survey respondents cited the
nonagricultural demand for land for the
relatively strong increases in the value of
agricultural land. The value of citrus land
increased after declines for the past two years.
Agricultural land values vary by the type of
land use and geographic area.
The Florida Land Value Survey, conducted
by the Food and Resource Economics
Department at the University of Florida,
provides estimates of the value of different
types of agricultural land for geographic
regions of the state. The survey questionnaire
was designed to obtain estimates of the market
value for different types of land as of May
2003. Survey respondents included rural
appraisers, farm lenders, real estate brokers,
farm managers, land investors, county
extension agents, Farm Services Agency and
Natural Resource and Conservation Service
personnel, county property appraisers, and
other persons who develop and maintain
information about rural land values in their
areas. Respondents provided 190 usable county
reports for the 2003 survey.
The state was divided, based on agricultural
production, into five major regions: Northwest,
Northeast, Central, South, and Southeast
(Figure 1). The Southeast was delineated as a


No. 151


result of the impact of urbanization in southeast
Florida. Even though the state was divided into
more homogeneous regions, wide variation in
agricultural land values still exists within each
region.

Changes by Type of Land Use

The value of agricultural land increased in all
regions. The value of cropland increased from
5 to 11 percent, and the value of improved and
unimproved pasture land increased from 7 to 16
percent. The value of farm woods increased 7 to
10 percent. Although citrus groves did not
increase as much as cropland and pasture, the
value of orange groves and 5- to 7-year-old
citrus groves increased 4 to 5 percent, and the
value of grapefruit groves increased 7 to 8
percent (Table 1).

Citrus. After two years of declining grove
values, the value of orange and grapefruit
groves increased in both the Central and South
regions. The value of orange groves increased
4.3 percent in the South region and 5.2 percent
in the Central region. The value of grapefruit
groves increased 7.4 percent in the South
region and 8.3 percent in the Central region.
The value of land with 5- to 7-year-old citrus
plantings increased 4.4 percent in the South
region and 4.7 percent in the Central region.


* John E. Reynolds is a Professor in the Food and Resource Economics Department, UF/IFAS, University of Florida,
Gainesville, FL 32611-0240.


UNIVERSITY OF Cooperative Extension Service

S! FLORIDA Institute of Food and Agricultural Sciences


July-August 2003







Cropland. The value of cropland increased in
all regions. The value of irrigated cropland
increased 7 percent in the Central and South
regions and 9 to 10 percent in the Northwest and
Northeast regions. The value of nonirrigated
cropland increased from 10.9 percent in the
Northwest region to 5.2 percent in the Central
region. The value of nonirrigated cropland
increased about 9 percent in the Northeast and
South regions.

Pastureland. The value of pastureland also
increased in all regions. The value of improved
pasture increased 9 to 15 percent in the southern
areas and 7 to 9 percent in the northern areas. The
value ofunimproved pasture increased 16 percent
in the South region, 11 to 14 percent in the
Northwest and Central regions, and 7 percent in
the Northeast region. The large increases in
pasture land values in the South region occurred
primarily in the coastal counties of that region.

Farm Woods. The value of farm woods
increased 9.7 percent in the Northwest region
and 7 percent in the Northeast region.

Regional Comparisons
of Land Values

The average value of citrus land was higher in
the South region than in the Central region. The
value of irrigated land and unimproved pasture
was higher in the Northeast than in other
regions. However, the value of other types of
agricultural land was higher in the Central
region than it was in other regions. The lowest
agricultural land values were reported in the
Northwest region.
The average value of orange groves was
$5,932 per acre in the South region (about $200
per acre higher than in the Central region). The
estimated value of grapefruit groves was $3,929
per acre in the South region ($15 per acre higher
than in the Central region). The average value of
land with 5- to 7-year-old citrus groves was
$5,440 per acre in the South region ($551 per
acre higher than in the Central region).
The value of irrigated cropland was $3,148 per
acre in the Northeast region and $2,998 in the
Central region. The value of irrigated cropland
in the South region was $2,475 per acre and


$1,986 in the Northwest region. The value of
nonirrigated cropland was $2,597 per acre in the
Central region and $2,366 in the Northeast
region. The value of nonirrigated cropland in the
South region was $2,014 per acre and $1,665 in
the Northwest region.
The value of improved pasture ranged from
$2,934 per acre in the Central region to $1,542
per acre in the Northwest region. The value of
unimproved pasture ranged from $2,080 per acre
in the Northeast region to $1,294 per acre in the
Northwest region. The values of improved and
unimproved pastureland in the South region were
65 and 78 percent, respectively, of those in the
Central region. The value of both types of
pastureland in the Northwest region were 65 and
62 percent, respectively, of those in the Northeast
region.

Transition Land

Transition land is defined as agricultural land
that is being converted or likely to be converted
to nonagricultural uses as sites for homes,
subdivisions, and commercial uses. Transition
land values were analyzed by metropolitan and
non-metropolitan counties for each region.
Metropolitan statistical areas are classified by
the U.S. Office of Management and Budget
and are considered urban or urbanizing areas,
while non-metropolitan statistical areas are
rural counties where less land is being
converted to urban uses. Transition land
values were over three times higher in the
Southeast region than in the other regions. The
values for transitional land in the metropolitan
counties in the other regions were two to three
times as high as the value of transition land in
non-metropolitan counties (Table 3).
The value of transition land within five miles
of a major town in metropolitan counties
increased 12 to 13 percent in the northern areas
and 13 to 18 percent in the southern areas. The
value of transition land within five miles of a
major town ranged from $13,167 to $16,392 per
acre, except in the Southeast region where
transition land values were $58,813 per acre.
The value of transition land more than five miles
from a major town in metropolitan counties
ranged from $7,000 to $10,388 per acre, except
in the Southeast region where transition land







values were $31,786 per acre. The value of
transition land within five miles of a maj or town
in non-metropolitan counties ranged from
$4,312 to $6,500 per acre, while transition land
values more than five miles from a major town
in non-metropolitan counties ranged from
$3,475 to $4,375 per acre.

Cash Rents

The estimated cash rent for nonirrigated
cropland was $34.89 per acre in the Northwest
region and $29.49 per acre in the Northeast
region (Table 2). The estimated cash rent for
improved pastureland was $25.40 per acre in the
Northwest region, $22.00 per acre in the
Northeast region, $20.63 per acre in the South
region, and $19.20 per acre in the Central
region. Cash rent for unimproved pastureland
ranged from $17.08 per acre in the Northwest
region to $9.47 per acre in the South region.
The cash rent data indicate that cash rents
increased for cropland and pasture in all regions
except for improved pasture in the Central
region (where change and the number of
observations were both small).
Cash rent as a percentage of the estimated
value ranged from 2.1 percent for nonirrigated
cropland to 1.3 percent for unimproved pasture
in the Northwest region and to less than 1 percent
for pasture land in the other regions. These rates
are low compared to other areas of the country
and reflect nonagricultural demand for land on
the market value of agricultural and rural land.

Expected Trends

Survey respondents were asked if they
expected agricultural land values to be higher,
lower, or remain unchanged during the next 12
months. About two-thirds of the respondents in
the survey (northern and southern areas)
expected agricultural land values to increase
during the next year (Table 4). Only 2 percent
of the respondents in the northern areas and 3
percent in the southern areas expected lower
land values during the next 12 months. Except
for the Southeast region, respondents expected
land values to increase from 4 to 7 percent
during the next 12 months. Agricultural land
values are expected to increase 3.6 percent in


the Northwest region and 3.9 percent in the
Northeast region during the next year. In the
southern areas, respondents indicate that they
expect agricultural land values to increase 4.9
percent in the Central region and 6.6 percent in
the South region. The Southeast region is
expected to see the largest increase of all regions
at 9.8 percent, primarily due to the urban demand
in this region.

Use of the Survey Results

The estimates of land values provided in this
report are based on the opinions of many people
involved in the real estate market. Care must be
exercised when making year-to-year
comparisons between surveys for several
reasons. First, the group of participating
respondents changes from year to year. Second,
government rules and regulations affecting
water, land use, and the environment may
change and affect agricultural land values.
Finally, with these changes, the results may not
be directly comparable with results from
previous years.
Despite these limitations, this survey has
provided estimates of agricultural land values
that have been fairly consistent since the
mid-1980s. These estimates serve as a guide to
the relative value of different land uses within
areas and between areas. It is important,
however, to emphasize that the value of a
specific tract of land may vary substantially from
these estimates because of the physical
characteristics of the tract, the location of the
tract, and the economic and institutional factors
that may affect or restrict its use. Therefore, the
value of a specific tract of land should not be
determined by these survey results. A
professional appraiser should be used to
determine the value for a specific tract of land.

References

Reynolds, John E. "Agricultural Land Values
Increase as Citrus Land Values Decrease: 2002
Survey Results" Florida Food and Resource
Economics No. 150. University of Florida,
Gainesville, FL, July-August 2002.
http://www.aebuscenter.ifas.ufl.edu/landuse









Table 1. Estimated land value per acre, by geographic region
and land use, 2002 and 2003
Date
Percent
Region/Land Use 5/02 5/03 Change
---- $/acre ------
SOUTH
Mature Oranges 5,687 5,932 43
Mature Grapefruit 3,658 3,929 74
5-7 Yr Citrus 5,211 5,440 44
Cropland
Irrigated 2,314 2,475 69
Nonrrigated 1,843 2,014 9 3
Pastureland
Improved 1,676 1,921 146
Unimproved 1,283 1,487 159

CENTRAL
Mature Oranges 5,438 5,721 5 2
Mature Grapefruit 3,614 3,914 83
5-7 Yr Citrus 4,668 4,889 47
Cropland
Irrigated 2,807 2,998 68
Nonlrrigated 2,468 2,597 5 2
Pastureland
Improved 2,681 2,934 94
Unimproved 1,659 1,899 144

NORTHEAST
Cropland
Irrigated 2,859 3,148 101
Nonrrigated 2,171 2,366 8 9
Pastureland
Improved 2,229 2,384 70
Unimproved 1,936 2,080 74
Farm Woods 1,726 1,847 70

NORTHWEST
Cropland
Irrigated 1,813 1,986 95
Nonrrigated 1,502 1,665 109
Pastureland
Improved 1,411 1,542 92
Unimproved 1,165 1,294 11 1
Farm Woods 1,134 1,244 97



"Florida Land Value Survey," Food and Resource Economics
Department, University of Florida, May 2003


Table 2. Cash rent by geographic region, May 2003
Land Class NW NE Central South
Improved Pastureland 25 40 22 00 19 20 20 63

Unimproved Pastureland 1708 1200 11 04 947

Nonrrigated Cropland 34 89 29 49


Table 3. Estimated value of transition land by geographic region, May
2003
Date
Percent
Region/Category 5/02 5/03 Change
--------- $/acre -----
Metropolitan Counties
< 5 Miles to Major Town
Northwest 11,646 13,167 130
Northeast 13,833 15,500 12 1
Central 14,134 16,029 134
South 13,873 16,392 182
Southeast 45,083 58,813 171

> 5 Miles to Major Town
Northwest 6,280 7,000 11 5
Northeast 7,500 7,813 42
Central 8,923 10,388 164
South 6,464 8,364 294
Southeast 28,333 31,786 122

Non-metropolitan Counties
< 5 Miles to Major Town
Northwest 4,107 4,312 50
Northeast 5,145 5,400 5 0
Central *** *** ***
South 5,931 6,500 96

> 5 Miles to Major Town
Northwest 3,234 3,475 75
Northeast 3,830 4,088 6 7
Central *** *** ***
South 3,950 4,375 108


Table 4. Respondents' opinions regarding their expectations of land values
over the next 12 months, by geographic region, May 2003
Item Higher No Change Lower
----percentage of responses----
Land Values, Next 12 Months
Southern Areas 67 21 2
Northern Areas 64 33 3


Figure 1. Geographic regions used for the Florida Land Value Survey


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