By:
Chuck Woods (352) 392-1773 x 281

Source(s):
John Reynolds jereynolds@mail.ifas.ufl.edu, (352) 392-1845, ext. 412

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GAINESVILLE, Fla. — With the exception of citrus groves, the value of farmland in Florida increased during the past year, according to a new University of Florida survey.

More than 200 respondents from around the state attributed the increases to various nonagricultural factors, said John Reynolds, agricultural economist with UF’s Institute of Food and Agricultural Sciences.

Land purchases by developers, speculators and government agencies as well as individuals who want land for second homes, recreational uses and larger home sites away from urban areas helped drive up the value of most property, he said.

But citrus land proved to be the exception, reversing its own trend of recent rising values.

“After two years of improving values, particularly for grapefruit groves, we found the value of citrus land in Central Florida and South Florida dropped by as much as 11 percent,” Reynolds said. “The drop in value can be attributed to the decrease in prices growers received for their fruit.”

He said the value of orange groves declined by 9.4 percent in South Florida and 11 percent in Central Florida during the past year. At the same time, the value of grapefruit groves in South Florida dropped by 10 percent and 4.3 percent in Central Florida — a marked contrast to the 25 to 28 percent increases recorded in 2000.

The average value of orange groves was $6,410 per acre in the South region, about $270 higher than in the Central region. The estimated value of grapefruit groves was $4,344 per acre in the South region, about $100 higher than in the Central region.

The value of land with 5- to 7-year-old citrus plantings decreased by 1.8 percent in the south region and 3.2 percent in central region. The average value was $5,802 per acre in the South region, more than $1,000 higher than in the Central region.

He said the future value of grove properties is likely to depend on the prices growers receive for their fruit as well as the severity of disease and pest problems that affect production.

In all regions, the value of pastures and cropland increased from 3 to 17 percent, and the value of improved and unimproved pasture land increased from 6 to 12 percent.

For the annual survey, Reynolds divides the state into four regions: South, Central, Northeast and Northwest. He also collects data for Southeast Florida — Miami-Dade, Broward and Palm Beach counties — because of the impact urbanization has on agricultural land values in the region. He started the survey in 1985.

Because of the state’s rapid urban growth — sometimes described as urban sprawl — large tracts of agricultural land are being converted into home sites and commercial development. Reynolds analyzed these “transition” land values by metropolitan and non-metropolitan counties in each region.

“For the third year, transition land values were again at least three times higher in the Southeast region than other parts of the state,” Reynolds said. “In other regions, transitional land values in metropolitan counties were about two times as high as the values for transition land in non-metropolitan or rural counties.”

The value of transition land within five miles of a major city in the metropolitan counties increased 10 to 12 percent in northern areas and 14 to 17 percent in southern regions. Values ranged from $11,000 to $13,120 per acre, except in the Southeast region where land values were $40,000 per acre.

For land more than five miles from major cities, values ranged from $5,635 per acre to $7, 904 per acre in metropolitan counties, except in the Southeast where values were $26,250 per acre. In non-metropolitan or rural areas, transition land values ranged from $2,928 to $5,275 per acre, depending on the distance from towns.

The survey also shows:

• The value of irrigated cropland increased 5 to 6 percent in the Northeast, Central and South regions and 12.7 percent in the Northwest. The per-acre value of irrigated cropland was $2,580 in the Central region, $2,561 in the Northeast, $2,150 in the South and $1,630 in the Northwest.
• The value of non-irrigated cropland increased from 2.7 percent in the Central region to 17.4 in the South. The value of non-irrigated cropland increased 6.1 percent in the Northwest and 10.9 percent in the Northeast.
• The per-acre value of non-irrigated cropland was $2,271 in the Central region, $1,960 in the Northeast, $1,630 in the South, and $1,396 in the Northwest.

Respondents included property appraisers, farm lenders, real estate brokers, farm managers, land investors, federal farm-assistance and conservation staff, UF extension agents and others who develop and maintain information about rural land values.

Results from past surveys are available at http://www.agbuscenter.ifas.ufl.edu/landuse/

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