COLUMBIA, MO. (RFD NEWS) — Missouri’s farmland market is becoming increasingly difficult to characterize with a single statewide trend.
The state has one of the largest farm populations in the country and is a major cow-calf region, but its diverse agricultural landscape means land values can vary significantly depending on location and intended use.
Certified General Appraiser Dan Peery with the American Society of Farm Managers and Rural Appraisers (ASFMRA) says Missouri is not really one land market, but several distinct markets within the same state.
Missouri Land Markets Vary by Region
Peery noted that Missouri and Iowa frequently trade places for the second-highest number of farms in the country, behind Texas.
But unlike Iowa, Missouri is a non-disclosure state, meaning sellers are not required to publicly disclose the price or terms of a real estate transaction.
That can make it more difficult to track land values and understand market trends.
More importantly, Peery said the state’s geography creates several very different land markets.
Missouri includes highly productive cropland, pasture and cattle country, timber, recreational property and land along river breaks.
“So when somebody asks, ‘What’s Missouri farmland doing?’ my first question back is, ‘Which part of Missouri?’” Peery said.
Cattle Country and Cropland Tell Different Stories
The divide between cattle and crop producers is also becoming more apparent in land values.
Peery pointed to Federal Reserve data showing ranchland values up about 11% year over year, while good Corn Belt cropland values have remained relatively flat.
After adjusting for inflation, he said cropland has experienced one of its sharpest real declines in nearly a decade.
That means a cattle pasture and a cornfield sitting across the road from one another could effectively be participating in two very different agricultural economies.
Tight cattle supplies and historically strong cattle markets are supporting pasture values, while crop producers continue to contend with tighter margins.
Nonagricultural Demand Adds Another Layer
Agricultural buyers are not the only competitors for rural land.
Data centers, wind and solar projects, timber, mining, energy storage, transmission infrastructure and other development opportunities are increasingly influencing how rural property is valued.
Peery said some lenders have told the Federal Reserve that data centers and renewable energy projects are helping support cropland values in certain areas.
“The land hasn’t changed,” Peery said. “What’s changing is the number of economic uses competing for it.”
Landowners have dealt with nonagricultural interests for generations through oil and gas leases and other arrangements. But Peery said the number of potential uses for rural property has expanded significantly.
Today, buyers may be interested in what is underneath the land, what can be built on it or what infrastructure can connect to it.
That could include minerals, energy storage, transmission lines, fiber optics, water access and power.
One Property Can Have Multiple Values
That growing competition can create a challenge for traditional farmland valuation.
A farmer may view a parcel based primarily on its ability to produce crops or support livestock, while a data center or industrial developer could view the exact same property based on its proximity to power, water, transportation or other infrastructure.
Peery said Missouri’s location also adds to that potential, with much of the state within a few hours of three international airports.
As more buyers compete for rural property, the definition of what makes land valuable continues to evolve. For farmers and landowners, that means understanding the local market — and the potential uses competing for the property — is becoming increasingly important.
