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Since net farm incomes are very
likely to rise at a rate greater than the rate of inflation,
prices for productive farm land are expected to rise as well.
Farmers are already paying premium prices for good farm land in
the Corn Belt. With land values in the Sun Belt states
experiencing upward pressure from the continued migration of
retirees and others who are relocating into the region, a positive
trend in the price of cropland is anticipated.
Farm and Timberland Values in Georgia and South
Carolina
Prime irrigated cropland
$2500-3000/acre
Non-irrigated cropland
$1500-2500/acre
Upland woodlands
$1000-2000/acre
Lowland
$750-1250/acre
These ranges reflect recent sales but should be
used as a guide only.
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Summary
Forest and timberland prices are continuing to
be impacted by the general economy. Demand for high-quality
hunting and recreation land remains strong, but with the slow-down
in the housing industry and the ongoing divestiture of land
holdings of major timber and paper companies, price increases for
rural timber land may be tempered somewhat. Well-located wooded
tracts that have future development potential may, however, fare
better due to the continued population shifts toward the coastal
areas of Georgia and the Carolinas.
Most of these factors point to expected overall
strong future demand for farm land, recreational tracts, and many
woodland properties. Higher interest rates and more restrictive
bank lending policies may make financing more difficult to obtain
for some potential purchasers of farm, forest, and agricultural
properties, but land prices should continue to reflect an apparent
paradigm shift in the income-producing capacity of farm real
estate.
Written by:
Lynn Dantzler and Chip Hall
PLANTATION
SERVICES
ALBANY, GEORGIA
229.888.2500
CHARLESTON, SC
843.958.0222
PLANTATIONSERVICESINC.COM
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