Cautious optimism for Wyoming farmland

RIVERTON — Wyoming farmland “shows stability” according to a  2025 report from the Farm Credit Services of America, but experts within the state argue that things aren’t quite that simple.

The FCSA builds its biannual valuation claims from 63 farms across four states: Iowa, Nebraska, South Dakota, and Wyoming.

The Cowboy State’s current land values are summarized as “largely unchanged” since the last report, though “market trends [in Wyoming] are difficult to identify because of limited sales activity.”

Considering the meager volume of data points, the FCSA shows Wyoming farmland has increased in value by 2.9% over the past two years and 110.5% over 10 years – reportedly based on “a combination of crop and pasture land.”

In light of these statistics, Fremont County Assessor Tara Berg noted that reports from FCSA don’t typically tell the full story, especially in Wind River Country.

“As assessor in Wyoming, we value ag land on a production basis,” explained Berg. “Land valuation data from national organizations often looks at overall land sales but neglects the agricultural land classification that we have in this state.”

To earn this specific classification, landowners must meet four specific criteria: The land must be used agriculturally; it cannot be in a platted subdivision unless it’s more than 35 acres; it must produce a product worth at least $500 annually; and the products that the owners are selling must be aligned with what the land is capable of producing.

“That fourth point is the one that throws everyone off,” said Berg. “In other words, you can’t have a 2,000-acre parcel, sell a single steer each year for $500, and receive an ag land classification.”

Once a piece of land meets the criteria and receives an ag land classification, it’s assessed for taxable value, which often equates to a “significant tax reduction” compared to land not classified as agricultural.

“Our valuations are made based on the five-year weighted average price of hay,” continued Berg. “Right now, it’s holding steady or slightly going up.”

This more nuanced summary is aligned with the FCSA’s general estimates.

As the price of hay increases, so does the average valuation of classified ag land in Wyoming. While this trend is preferred to the alternative, certain factors affecting hay prices aren’t necessarily good for producers.

“There are environmental factors like drought that have driven prices up,” said Jim Magagna, executive vice president of the Wyoming Stock Growers Association. “While higher prices look good on paper for land valuation, expenses for producers are also sky high.”

For some cattle operations in Wyoming and across the nation, inflated beef prices have outpaced producer costs, Magagna noted.

“It is likely that during the next five years, there will be at least one year where the price of livestock won’t cover the average producer’s expenses in Wyoming,” he said.

In Fremont County, Berg observed that farmland has been mostly resistant to development pressure in recent years.

“Despite modern day challenges, landowners aren’t stopping production or selling their holdings en masse,” she said. “There is potential for subdivisions to encroach on farmland, but we aren’t seeing much of that on the ground.”

Though Magagna agreed that much of Fremont County’s historical farmland remains intact, he also predicted an uphill battle against cultural and environmental challenges.

“Historically, in places like Dubois and Lander, when a piece of farmland went up for sale, a neighboring farmer would buy it,” he said. “Now, producers seeking to scale up their operations or start a new farm are often priced out – especially in areas with scenic value.”

Going forward, Magagna expects that farmers and ranchers in Fremont County and across the state will need to diversify their income streams to maintain a viable livelihood.

“Many of our farms have been in the same families for three or four generations, and we want to see that become five or six,” he said. “But that’s going to require some adaptation including leasing to wind farms, outfitting agreements, and conservation easements.”

While both Berg and Magagna agree that stable farmland valuation is good news for Wyoming, neither equated the statistics to an easy road ahead for producers.

“Talk to just about any farmer and they’ll tell you,” said Magagna. “It just isn’t easy.”

This story was published on January 27, 2025.