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August 4, 2006

Missouri Farm and Real Estate Value

(COLUMBIA, MO) - “Missouri farmland values continued to increase at double-digit rates during 2005, in contrast to cash rents that remained fairly steady, trends that we are seeing nationwide. Land values in the State are largely being driven by external factors such as non-farm investors, recreational demand, and relatively low interest rates, factors which have smaller impacts on cash rents,” said Gene Danekas, Director of Missouri Agricultural Statistics Service.

Missouri farm and real estate value, including land and buildings, increased 10.6 percent to $1,980 per acre as of January 1, 2006 compared with a revised $1,790 per acre on January 1, 2005. Non-irrigated cropland values increased 10.8 percent to $2,050 per acre, while irrigated cropland values increased 15.0 percent to $2,840. Combined, this leads to an all cropland value of $2,100, an 11.1 percent increase over last year. Pasture value increased 11.9 percent to $1500 per acre.

Non-irrigated cropland cash rent held steady from last year at $79 per acre. Pasture cash rent declined to $26 per acre from $27 per acre last year.

United States Farm and Real Estate Value

Nationwide, farm and real estate value increased 15.2 percent to $1,900 per acre as of January 1, 2006 compared with a revised value of $1,650 per acre on January 1, 2005. Cropland value saw a 13.3 percent increase to $2,390 per acre. Pasture value came in at $1,000 per acre, representing a 22.0 percent increase over last year.

Average U.S. cash rent for cropland increased $1 an acre over last year to $79 per acre, a 1.3 percent increase. Pasture cash rent also increased, going from $10.30 per acre last year to $10.80 per acre this year.