A fascinating new report from the amazing team at Texas A&M Natural Resources Institute sheds light on the changing landscape of Texas. Their sixth edition of a five-year study dives deep into population growth, land values, ownership patterns, and how land use is changing across Texas. The takeaways, reveal some significant trends that paint a picture of a state undergoing considerable transformation.
A Comparison of the 2017 & 2022 USDA Ag Census Data for West Texas Counties
The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) has released 2022 Census of Agriculture data. The graphic presents a fascinating snapshot of the ranching landscape impacting four West Texas counties: Tom Green, Schleicher, Crockett, and Menard. Using data from the 2017 and 2022 USDA Agricultural Census, we can glean valuable insights into trends and shifts within this vital sector of Texas’s economy and heritage.
[Read more…] about A Comparison of the 2017 & 2022 USDA Ag Census Data for West Texas Counties
Texas Producer Average Age Increases 1.2% to 59.9
Every 5 years the USDA’s National Agricultural Statistics Service’s Census of Agriculture publishes and provides data at the U.S., state, and county levels. One of the metrics that is tracked in this census is the average age of agricultural producers.
[Read more…] about Texas Producer Average Age Increases 1.2% to 59.9
2023 Rural Land Value Trends Report
Check out the 2023 Rural Land Value Trends Report from Texas Agriculture Law Blog by Tiffany Lashmet! https://agrilife.org/texasaglaw/2024/05/06/2023-rural-land-value-trends-report-is-here/
West Texas:
Strong demand for quality tracts continues to hold up prices in the region. At $2,410 per acre, prices rose 8.02 percent YOY. Tract size has also decreased from highs in 2021 and 2022, coming in at 385 acres this quarter, 10.65 percent below one year ago. Annualized sales volume declined 50.97 percent to 431 sales. Total dollar volume at $155.54 million decreased by 72.39 percent. At 64,540 acres, though a slight increase from last quarter, total acreage declined 74.44 percent YOY. Fourth quarter only sales volume fell 26.09 percent below that of fourth quarter 2022, a much less drastic drop compared to YOY.
Region 3 Take Homes:
Counties included: Archer, Baylor, Childress, Clay, Coke, Collingsworth, Concho, Cottle, Crockett, Dickens, Donley, Edwards, Fisher, Foard, Glasscock, Hall, Hardeman, Haskell, Irion, Jack, Jones, Kent, King, Kinney, Knox, Mitchell, Motley, Nolan, Reagan, Runnels, Schleicher, Scurry, Shackelford, Stephens, Sterling, Stonewall, Sutton, Taylor, Throckmorton, Tom Green, Upton, Val Verde, Wheeler, Wichita, Wilbarger, and Young.
- In discussions with an attorney in San Angelo, he stated that he had worked on 10 to 15 wind and solar leases in 2023, with 8 to 10 of those signed. Several of the companies decided they were no longer interested before the lease was signed.
- According to the attorney, this was due to a number of factors including poor due diligence on the part of the company or ERCOT West not having enough transmission lines. These wind leases come in blocks where the attorney may represent one to a dozen landowners at a time.
- As mentioned in the 2022 discussion, a solar farm in San Angelo area was expanding. This expansion has been completed from one to two sections. There has not been any construction in the immediate San Angelo area since 2022 of any new solar farms. This could be a result of the increased cost due to higher interest rates, cost of materials and construction costs.
- Purchases by developers dropped significantly in 2023. This is due primarily to the increased interest rates and the fact the end users for these properties are no longer in the market due to the higher interest rates.
- There continues to be an increase in residential development in the immediate area of the larger trade areas, specifically Wichita Falls, Abilene and San Angelo. It appears that residential buyers continue to move to areas with smaller schools, which are considered to be above average for educational opportunities.
For the 2023 and previous years report, be sure to download it here – https://www.txasfmra.com/rural-land-trends
Rural Land Trends – Texas Chapter ASFMRA. (2024, March 29). Texas Chapter ASFMRA. https://www.txasfmra.com/rural-land-trends
2022 Texas Land Market Developments
The reported demand for land by rural brokers has slowed down compared to the contest for land in 2021. However, at the end of 2022, prices had increased by 12.44 percent to $4,446 per acre statewide. By the end of 2022, a total of 719,738 acres had changed hands, down 14.96 percent from 2021. This suggests that market activity has fallen to a more normal level at high prices. The rising prices coupled with the diminished activity suggests that current buyers are focusing on higher quality properties.
In West Texas strong demand drove up prices in the region. At $2,231 per acre, prices rose 14.59 percent year over year. However, the annualized sales volume declined 22.35 percent to 879 sales. Typical size of acreage remained nearly the same, dropping 0.33 percent to 431 acres. The total dollar volume spent at $563.4 million increased by 25.71 percent compared to 2021. At 252,510 acres, total acreage sold rose 9.71 percent. Fourth quarter only sales volume fell 9.80 percent short of fourth quarter 2021 totals, 49.08 percent short of 2020 totals, but 14.05 percent above the 2019 fourth quarter sales total.
Region 3 is made up of counties located in North Texas all the way through South Central Texas.
In looking at the region as a whole, while the volume of sales has declined, the price per acreage has increased. As you can see in the graph below, the price per acre has continued to steadily increase since 2020.
Below Central Texas is broken down by cropland, rangeland and hunting lease rangeland. If you are thinking about leasing land compared to buying, be sure to check out some of the prices and how they are trending.
For more information and the full report, be sure to check it out here!
Are you a new landowner in Texas? We are bringing a series of workshops around Texas to help new landowners get involved in their communities! Our first stop is in Lubbock, followed by Corpus Christi, San Angelo, College Station, and Stephenville, Texas. For more information reach out to casey.matzke@ag.tamu.edu. Interested in registering for this free event? Click here!
