Texas Dryland, Ranchland Continue to Mark Double-Digit Gains

Quarterly Fed Bank survey finds strong demand for rural land.

Minnechaduza Creek Ranch
Minnechaduza Creek Ranch
(Farm Journal)

Texas dryland cropland and ranchland continued to post double-digit annual gains through the third quarter of 2021, according to the Federal Reserve Bank of Dallas. The bank pegs the value of Texas dryland cropland at $2,328 an acre and the value of ranchland at $2,866 an acre for increases of 11.6% and 17.4%, respectively.

In addition, the bank’s quarterly survey lists an annual gain of 6.4% for irrigated cropland with a statewide value of $2,506.

The quarterly survey lists an 16.8% annual gain in the value of ranchland across the bank’s full district, which includes southern New Mexico and northern Louisiana. The value of dryland cropland rose 11.9% across the district while the value of irrigated cropland increased 6.5%.

The survey’s measure of bank attitudes toward future trends in farmland values indicates nearly all the respondents look values to continue increasing.

Dallas District Rural Land Values since 2011

Dallas District Cash Rents Over Time