Fond du Lac Co. Land Values Increase Dramatically

Mike Rankin
Crops and Soils Agent
University of Wisconsin - Extension

         I recently received my copy of Agricultural Land Sales from the Wisconsin Ag Statistics Service and continue to be amazed at the rapid rise in land sale values for Fond du Lac County (as well as Wisconsin).  For 2001, 2,357 acres were sold as agricultural land (without buildings).  The average price paid for bare farmland was $1,777 per acre.  With buildings, the average price paid was $2,450 per acre.  Next, I went back to some old copies and proceeded to create the following graph of land sales as follows:

Average price paid for agricultural land in Fond du Lac Co. continuing in agricultural use

         Keep in mind that I've only included sales where land has continued in agricultural use.  As the graph illustrates, the average price paid for bare agricultural land in the county has increased by a whopping 178% in the past ten years.  For land with buildings and improvements, the average price paid per acre has increased 119%.  Good or bad?  I guess it depends on your perspective as a buyer or seller.  Certainly crop prices have not seen this level of increased value.  Why then the increase?  Many factors are probably involved…..a strong economy throughout most of the period, a strong non-ag real estate market, U.S. Farm Bill Policy, competition for land, etc., etc.  One thing is clear, the option of renting good farmland for the purpose of crop production is a whole lot more cost-effective than buying that same land.

         To see a more detailed summary of Fond du Lac Co. and Wisconsin agricultural land values, go to:  http://www.nass.usda.gov/wi/landsales/index.htm