You know what they say—invest in land, they’re not making more of it! Alabama farm real estate values are up, marking now as a great time to acquire the acreage you’ve always dreamed of. Here’s a breakdown of exactly how Alabama farm real estate values have increased in 2018.
Farm real estate values
Alabama farm real estate values, which encompasses all land and buildings on a farm, increased $30 per acre, which is about a 1 percent increase over last year. How does this compare to other Southeastern states?
- South Carolina’s farm real estate increased $10 per acre (a less than 0.5 percent increase over 2017)
- Georgia’s farm real estate values decreased by $50 per acre (a 1.4 percent decrease from 2017)
- Florida’s value did not change from 2017 to 2018.
And nationwide? The farm real estate value averaged $3,140 per acre in 2018, which is up $60 from 2017.
Cash rent for cropland
As farm real estate values in Alabama increased in 2018, so did the cost of rent on farmland—a benefit for landowners. In 2018, cash rent for cropland increased $3.50, at $61.50 per acre. Here’s how it compares to other Southeastern states:
- South Carolina’s cash rent for cropland increased $2 to $48.50 per acre.
- In Georgia, cash rent for cropland fell $4 to $116 per acre.
- Florida’s cash rent for cropland also decreased in 2018, falling $8 to $115 per acre.
Nationwide, cash rent for cropland increased $2 to $138 per acre in 2018. Cash rent for pasture did not change nationally in 2018, remaining at $12.50 per acre.
Other statistics for Alabama
- The average cash rent per irrigated acre decreased to $111, which is $10 less than it was in 2017.
- The average cash rent per non-irrigated acre increased to $59, which is $4 more than it was in 2017.
- Pasture land average value per acre was $2,300 in Alabama in 2018. The national average was $1,390.
- Pasture land average rent per acre was $22 in Alabama in 2018, compared to $17 in Florida and $27 in Georgia.
Owning and renting out land in Alabama looks pretty good in 2018! For the full report from the National Agricultural Statistics Service Southern Region, click here.
Looking to buy or sell property in West Alabama? Call Bill Mackey Real Estate today at 334-289-8470. For more facts and figures like these, and for helpful information for home buyers, sellers and owners, continue to follow the Bill Mackey Real Estate blog.