This summer has been an exceptionally wet one for the Midwest region of the U.S. Record flooding has hit the area harder than ever before and landowners have faced difficult times repairing the damage. Farmers who spent time preparing were left with conditions far worse than what they had anticipated. And some have had to hire extra help to rehab their devastated properties.
Read more: The Cost to Cure Iowa
While mother nature has provided drier and warmer weather that has helped floodwaters recede this past month, the destruction left behind still has many landowners and buyers wondering how this will affect crops and land prices in the area.
Outlooks for the year from several organizations have reported delays in crop planting because of the devastating floods. In June, Successful Farming reported that the United States Department of Agriculture (USDA) had assessed that about 18.0 million acres of soybeans had yet to be planted. In the report, the USDA pegged the U.S. soybean planting completion rate at 77% vs. a 93% five-year average. Another news source said that corn futures hit a 5-year high due to predicted low yields.
Looking at the effects of land prices throughout the area, it is evident that it truly depends on the specific property. As talked about in a recent article from Farmers National, the length of time flooded and destruction caused by floodwaters will be the main factor behind the change in property values. While most land will recover in time, other properties will require tremendous efforts to build back.
A great example of a Missouri property that has quickly recovered from the flooding and is ready to be planted or developed is this 94-acre property on the Mississippi River in Pike County. Click here for more details on it!
Remember that all land is valued based on the potential to produce. Whether it be farming, timber, or recreation, we will see that those properties that are able to recover the quickest will experience the lowest drop in overall property value.