This presentation will focus on a comparison of the characteristics of publically available estimates of agricultural land values with those generated using actual land sales data.
Historically, the National Agricultural Statistics Services (NASS) of the U.S. Department of Agriculture has generated estimates of agricultural land values for the state of Kansas. The land value data series dates back to the 1960’s and, until recently, was the only public source of information on land values available to landowners, tenants, and others.
The NASS estimates are generated via surveys sent to producers. The estimates represent average values, without distinction for land quality or other important parcel-specific features. The disadvantage to using NASS estimates is that opinion surveys may not accurately reflect current market conditions, especially if land values are changing rapidly.
To address the potential disconnect between the NASS land value estimates and current market conditions, the presentation will highlight recent research on Kansas land values, using actual sales transactions from 2010 to 2012.