Thursday, February 28, 2008

Rural Texas Land Values

Here is a summary from the Dallas Fed. If you live in North Central or Central Texas and own land, you're sitting pretty!

What shocks me to no end is that ranch land values in several regions, including North Central and Central Texas, are actually higher than crop land values. I would bet that's due to a combination of livestock prices and residential/lifestyle farmers moving into the area. If you look at the chart on the bottom of the page you can see that dry land and ranch land values for the region briefly converged in about the second quarter of 2006 before commodity prices really took off. I wouldn't bet against crop land values overtaking ranch land values again should grain prices stay high.

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