The chart and table in the first alternative above illustrates the change in Oklahoma agricultural land values since the early 1970’s. Average cropland, pasture, and all land values are shown in nominal terms. The number of tracts and the average size of each sale tract included for each average are shown in the table. With the exception of cropland, average Oklahoma agricultural land values have surpassed the previously high levels of the early 1980’s and recovered from the years of devaluation that followed.
Deflated (real) values were computed by dividing average values by the 1st Quarter GDP Price Deflator and multiplying by 100. Given these inflation adjustments, 2006 Oklahoma average agricultural values for all land are still just 73% of their previous peak despite sizable percentage increases over the past several years. A positive annual change represents a real increase in asset value for the year. Conversely, a negative percentage change represents a real decrease in asset value.
Only tracts 40 acres in size or larger selling for $3,000 per acre or less are included in the averages. Per acre values shown for cropland and pasture are the averages of tracts having 85%+ cropland and pasture, respectively. Because of unavoidable data collection difficulties, relatively less sale data is available for 1995 and 1996. As a result, averages shown for both years may not be representative of the land market conditions during that time and caution is advised in its employment.
