B-IOI - Sept er 1965 What} Happening UNTHE TEXAS FARM1 AND RANCH LAND IMARKET TEXAS A&M UNIVERSITY Texas Agricultural‘ Experiment Station Texas Agricultural Extension Service College Station, Texas aurmeniaBegq; i gaqzagnii§g%xtneflwi M.$_Q.. Contents Summary Summary .............................. .; .............................................................................. Introduction ......................................................................................... ..; ............ .. Texas Land Market .......................................................................................... .. Divergence of Net Income and Land Prices ........................................ The Blacklands ........................................................................................... .. Land Market Activity in Type-of-fanning Areas ........ 1 Q _ . . . . . . . . . . . . . . . . . . . . . . . .1 Northern High Plains .............................................................................. Southern High Plains ............................................................................. Rolling Plains and Prairies ..................................................................... .. Mountains and Basins .............................................................................. .. Upper Rio Grande Valley ....................................................................... .. 1_ Edwards Plateau and Central Basin ...................................................... ..; South Texas Plain .................................................................................... Coastal Bend .............................................................................................. West Cross Timbers .................................................................................. Grand Prairie ............................................................................................ Blackland .................................................................................................... East Texas Fanning ............................................................................... .. . East Texas Timber .................................................................................... Post Oak ....................................................................................................... ..f» Coast Prairie ............................................................................................... ..1_ his report of the 1963 Texas land market activity is based on inf if obtained from 26 sample counties in 16 of the 17 type-of-fanning a if each sample county, specific data were obtained from warranty deed -{ all bona fide sales containing 20 or more acres located outside corpora of towns. General information was obtained from persons having l.‘ of local land market activity. I= Since 1949, Texas land prices ha"€ consistently risen, volume of declined and net farm and ranch income has fluctuated. Results of 5 land market study deviated from this pattern. Land prices continu and volume of land sales increased, reversing its position from the constant decrease. Net farm and ranch income remained approx’ t same as in 1960. The conclusion drawn from this relationship is i cultural land prices are being influenced more and more by factors ex agriculture such as the urban demand for land for hobby farming, ' sites, speculation and recreation. Results of the 1963 state land market activity are as follows: (1) av acre land price was $93.94, l0 percent above the 1960 average, (2) t»; land sales was 22 percent above the 1960 average, (3) 73 percent of all s»; mortgaged, (4) interest rates ranged from 41/2 to 10 percent, (5) the sell principal lender, (6) the Veterans Land Board handled approximately *1 of all sales and (7) all or some of the mineral rights were retained in - i of all transactions. ' Unique characteristics in each type-of-farming area influence lan activity. Land prices in some areas are closely related to agricultural p " ty, while land prices in other areas seem to be only slightly related to a A productivity and closely related to factors external to agriculture. A . !'1‘- f- . . \ ' "cam- -"~§ r ‘i ‘ ~ " *_~..€;V._ . ‘ T’S HAPPENING in the T exax Farm and Ranch Land Market f. B. Andrews and A. B. Wooten* espectively, resource development special- ’ commercial recreation, Texas Agri- -- tural Extension Service and professor, 3 v partment of Agricultural Economics and » Sociology. The Texas Agricultural Experiment Station has developed proced- ures for keeping abreast of land market trends in Texas since 1928. These studies, conducted at 3- to 5-year intervals, have the following objectives: (1) to identify the primary factors affecting land market activity in various areas of the state, (2) to recognize the changing importance. of factors affecting the demand for land, (3) to maintain current indices of land prices and volume of land sales and (4) to evaluate changes in type of credit used in land transactions. The data were used in a general analysis of land market activity for the entire state and for each type-of-farrning area. No attempt was made to quantify the influence of various factors in localized land markets. Twenty-six sample counties located in 16 of the 17 Texas type- of-farming areas were selected for this study, Figure 1. In each of the sample counties, information was obtained from warranty deed records of all bona fide transfers of agricultural land during 1963 which contained 20 or more acres. Some 1,400 land transfers were analyzed. Additional information was obtained from rea-l estate brokers, county agricultural agents, county clerks and others persons having knowledge of land market activity in each of the 26 sample counties. Specific information was solicited as to reasons for purchase and sale of land, proposed use of the land, influence of mineral activity, recreation and urbanization and the extent of speculation. This information was a valuable aid in analyzing and interpreting the data obtained from deed records. _ Agricultural land, which is all land outside the corporate city limits of towns and cities, is not all used for agricultural purposes. Therefore, the demand for agricultural land is not solely determined by agricultural production, prices or net income. Demand is in- fluenced by factors external to agriculture. TYPE-OF-FARMING AREAS IN TEXAS 1. Northern High Plains 2. Canadian Breaks 3. Southern High Plains 4. Rolling Plains and Prairies 5. Mountains and Basins 6. Upper Rio Grande Valley 7. Edwards Plateau and Central Basin 8. South Texas Plain ZZQ Sample Counties 9. 10. ll. 12. 13. 14. 15. 16. 17. Lower Rio Grande Valley Coastal Bend West Cross Timbers Grand Prairie Blackland East Texas Farming East Texas Timber Post Oak Coast Prairie Figure l. The 26 sample counties, by type-of-farming areas, in the 1963 study of farm and land prices. 4 T exar Land zllarket "eral factors considered relevant to a general ‘ of land market activity are per acre price, of sales, mineral activity, credit sales, interest I d Veterans Land Board sales. These factors AL lend themselves to quantitative measurement, j attempt was made to rate the factors as to and effect relationship. The factors were To depict the actual situation that existed for tte and each type-of-farming area from 1960 lable 1 lists the average per acre sales price by i-farming area and the weighted state average. showed that land prices increased between w nd 1963 in 13 of the 16 type-of-farming areas. jrom 1949 t0 1960 the average per acre land iand volume of land sales have been inversely fated. Land prices have steadily increased while Plume of sales has declined. In 1960, land prices 1d an all time high while land sales volume e lowest since 1935. l esults of the 1963 study deviate from the seem- V. traditional pattern; land prices and volume of i were positively correlated. Average land prices ased l0 percent above the 1960 average, to a high of $93.94 per acre, and volume of sales “ased 22 percent over the number reported in 1947-49, 1954, 1960 AND 1963 Thirteen of the 16 type-of-farming areas showed a greater number of land transfers in 1963 than recorded in 1960. Volume of sales is the actual num- ber of land transfers and is not related to total acreage involved in each sale. The number of sales is one of the indicators of demand for land. In many areas of the state, large landholdings have been divided and sold in smaller units. Purchase of the small units are being used for enlarging existing farms and ranches, hobby farming, rural homesites, speculation and rec- reation. In a land market with these characteristics, small units receive a higher per acre price than large units of land. Mineral rights are influential in’ determining land market activity in various sections of the state as evidenced by the fact that the seller retained all or some of the mineral rights in 60 percent of the 1963 land transactions. No attempt was made in this study to quantify the influence of mineral activity on land prices. In areas where a largeldegree of mineral activity exists, it is common to find mineral rights divided and transferred separate from the land. In these areas, land transferred with mineral rights has a higher market value than land transferred without mineral rights. In areas of limited mineral activity, mineral rights seem to be automatically transferred with the 1. AVERAGE SALES PRICE OF FARM AND RANCH LAND, BY TYPE-()F-FARMING AREAS IN TEXAS, 1947-49 1954 to 1960 to Type_of_farmirlg areas1 1947-49 1954 1960 1963 to 1963 1963 1963 Dollars per acre Percent change 9 Northern High Plains 46 74 124 169 +267 +128 + s6 l Southern High Plains 75 131 206 265 +253 +102 + 29 Rolling Plains and Prairies 522 742 100 98 +288 + 35 — 2 jMountains and Basins 9 13 19 41 +356 + 46 +116 . Upper Rio Grande Valley 732 823 1,073 700 - 5 -- 15 - 33 Edward Plateau and Central Basin 303 713 654 99 +230 + 39 + 52 fiSouth Texas Plain 46 85 78 107 +133 + 26 + 37 [Lower Rio Grande Valley 228 330 372 301 + 32 _- 9 _ 19 Coastal Bend 104 170 240 349 +236 +105 + 45 West Cross Timbers s2 63 79 110 +244 + 75 + 39 ' Grand Prairie 33 66 32 106 +221 + 61 + 29 a Blackland 69 112 149 202 +193 + 30 + 35 j EQst Texas farming 33 53 31 113 +253 +123 + 45 "East Texas timber 34 68 73 116 +241 + 71 + 59 ‘ Post Oak 27 4o 69 114 +322 +185 + 65 Coast Prairie 54 145 199 232 +330 ‘ + 60 + 28 » Weighted state average 42 72 85 94 +124 + 31 + l0 ve prices of subdivisions of this area. ‘r detailed description offltype-of-farming areas, see Texas Agricultural Experiment Station Bulletin 964, pps. 25-49. wjusted price for combination of Jones and Shackelford counties. Weight factor used derived from number of acres in counties. ices adjusted to represent average price of entire area as indicated by sales from sample counties. Previous land market reports is figure is indicated by sales from sample counties in this area. In the 1954 Land Market Report, information for Sutton unty was unavailable, thus the price shown was indicated by sales from Blanco and Gillespie counties only. The large amount i. lower-priced range land in Sutton County probably is responsible for the decline in the 1960 price. Considering Blanco and illespie counties only, the average price for 1960 would have been $81.28. land. Mineral rights in these areas have very little effect on the market value of land. The number of land transactions that were mortgaged increased from 50 percent of total sales in 1960 to 73 percent of total sales in 1963. The use of mortgages in land transactions allows individuals to buy land on a pay-as-you-go basis. Persons not using the land for a livelihood find it easier t0 enter the market, and farmers and ranchers may increase the size of existing units with a small initial cash outlay. l Interest rates on mortgages held by the Veterans Land Board, Federal Land Bank and insurance companies in 1963 ranged from 5 to 61/2 percent. Land transactions administered by sellers and other individuals often received higher interest rates. In some cases, the buyers were willing to take the easy credit of the sellers and pay interest rates up to 10 percent. A Veterans Land Board activity is restricted to the extent that a maximum of $7,500 can be loaned only to persons that qualify as Texas veterans. In the ranching area of Texas where very large tracts of land are needed for economic ranching units, the Veterans Land Board is inactive. In other areas of diversified land use where tracts of land are transferred in small units, the Veterans Land Board is influential. The demand for land is strengthened in areas where the Veterans Land Board is involved in approximately 25 percent of the land sales. Changes in the land use pattern from traditional agriculture to multiple land use or to a higher and 23o 22o 21o zoo 19o 13o 17o 16o 15o " 14o 130 12o 11o 10o Land Prices Ind ex 50 Net Farm Income 1949 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Year Figure 2. Index of Texas farm and ranch land prices and net farm income, 1949-63. Base for land prices, 1947-49 = 100. Base for net farm income, 1949 = 100. 6 _ average per acre net farm and ranch income better use causes land price to increase. .1 considered a consumption good as well as a f” of agricultural production in many sections of Numerous localized land markets have felt the Q of urbanization and recreational demand for" This has been reflected in land market t through increases in land price and volume of i‘ In some counties located ‘near large metro? areas, as much as 50 percent of the 1963 land A‘ were purchased by out-of-county buyers. Divergence of Net Income and Land l‘ An unusual relationship between net farnii ranch income and land prices has existed in v since 1949. Traditionally, land prices and net in have moved in the same direction with a “f: of 1 or more years. Since 1949, the trend of _ prices increased while the trend of net decreased. Land prices in 1963 were 113 higher than 1949 land prices, and 1963 net i_ was approximately 20 percent lower than '- income. This existing and expanding gap be i, land prices and net income indicates that agricu land prices are increasingly determined by f’: external to agriculture such as hobby farming,» l homesites, speculation and recreation. ‘ The ratio of per acre agricultural land pri i widely among the type-of-farming areas. This indicates that in most areas of the state agricu TABLE 2. INDEX OF LAND PRICES, VOLUME OFIV SALES AND PRICES RECEIVED BY FA- IN TEXAS, 1935-63 (1947-49 z 100) ” i Index of Ind?x of IHd6X 5 Year land pricesl Prices 1 sales received 1935 42 35 1940 44 35 1941 45 44 1942 46 56 1943 55 65 1944 62 65 1945 9 75 68 1946 77 83 1947 98 100 1948 97 106 1949 105 94 1950 117 103 1951 146 123 1952 158 112 1953 166 94 1954 170 91 1960 201 88 1963 223 93 1Derived from “Prices Received by Texas Farmers Index Numbers, 1910-58,” Texas Agricultural Expe H; tion MP-401, December 1959 and “Texas Agricultural Crop and Livestock Reporting Service, SRS, USDA, Texas, 1960 and 1963. ‘ ‘= 3. RATIO OF FARM AND RANCH LAND PRICE 3' TO NET FARM INCOME, EXPRESSED IN NUMBER OF YEARS OF NET INCOME RE- QUIRED TO PAY FOR LAND, 1947-49, 1960 AND 19631 1947-49 1960 199s » Years Years Years _ 22-- farm, Blackland Prairie 4.4 14.4 9.1 farms, (irrigated) High Plains 9.6 6.6 7.1 1| farms, (nonirrigated) High Plains 3.7 6.3 7.3 1 t-grain sorghum, Southern Plains - 4.7 6.0 18.0 l wheat farms, Southern Plains 4.4 7.0 11.6 ranches, Southwest 12.0 17.0 27.0 p, of the data used for these calculations obtained from p» n Costs‘ and Returns . . . Commercial Farms by Type, and Location," Bulletin 230, ERS, USDA, Washington, ; ., Revised June 1964. l» prices are not closely related to agricultural puctivity but are influenced by outside factors, e 2. F Several type-of-farming areas were selected to the absolute values of land and the changes that Te occurred since 1949. In each of the six areas ‘_ n. in Table 3, the per acre price of land in- ed. The per acre net farm and ranch income _ eased in all areas except the Blackland type-of- ing area. The per acre net income was much f er on Southern High Plains wheat farms than in ious years because of lower wheat prices, reduced yields and higher operating expenses. This ratio of per acre farm and ranch land price _, per acre net income shows the length of time required to pay for land if all net income were used for this purpose. For example, it would take 27 years to pay for a cattle ranch in the Southwest using 1963 net income if all net income were applied to land payment. The Blacklands Although the Blackland type-of-farming area im- proved its net farm income position relative to the net farm income received in 1957-59, many other changes accompanied this increase. Compared to 1957-59 averages, the 1963 typical cotton farm increased 22 percent in size, net income increased 45 percent, capi- tal requirements increased 52 percent, market value of land and buildings increased 54 percent and hired labor decreased 50 percent. The increase in net farm income results from higher per acre cotton yields and an improved cost- price relationship. In 1963, the per acre lint yield increased 20 percent, total cash receipts increased 40 percent and total cash expenditures increased only 28 percent above the 1957-59 averages. Since 1960, land market activity has accelerated, volume of sales has increased 65 percent and per acre land price has increased 36 percent. A portion of this increased activity may be attributed to demand for land to enlarge farms. The greatest portion of the increased market activity came from demand for land for reasons other than agriculture. The Black- land area is geographically located so that it feels the impact of urban buyers. Forty-three percent of the total purchases in the sample counties were made by nonresident buyers. SLE 4. LAND SALES DATA BY TYPE-OF-FARMING AREA IN TEXAS, 1960 AND 1963 Proportion Range of Type-of-farming area Per acre of sales mortgage price mortgaged interest rate 1960 1963 1960 1963 1960 1963 Dollars Percent Percent . Northern High Plains 124 169 45 40 5 -51/2 5 - 61/2 . Southern High Plains 206 265 52 75 5 -61/2 41/2- 81/2 Rolling Plains and Prairies 100 98 58 76 4 -7% 41/2-10 . Mountains and Basins 19 42 45 89 5 -6 41/2- 6% ~ Ijpper Rio Grande Valley 1,079 s70 50 60 4 -e 5 - 6 . Edwards Plateau and ‘ Central Basin s5 99 e7 7s s -7 4w 7 ;i South Texas Plain 78 107 40 73 l 4 -7 41/2- 7 .1‘ Lower Rio Grande Valley 372 301 68 80 5 -7 41/2- 8 J Coastal Bend :1 :2 240 I 349 30 75 5 -6 41/2- 6 A. West Cross Timbers c‘! 79 110 52 70 31/2-7 41/2- 7 Grand Prairie 82 106 74 70 4 ,-7 4%-l0 Blackland 15o 202 s2 79 s -s 41/2- s y. East Texas Farming 81 118 39 70 3 -8 41/2-10 2 .. East Texas Timber 73 117 l0 . 55 5 -3 41/2- 3 9 Post Oak 69 114 53 81 3 -8 41/2- 7 64 78 4 -6 4%- 8 Coast Prairie A 199 232 TABLE 5. LAND SALES DATA BY TYPE-OF-FARMING AREA IN TEXAS, 1960 AND 1963 Volume of Proportion of sales 1963 sellers retaining sales admin, izrszlzs‘ wmiszsd w by “iii” 1963 1963 1960 1963 1960 i‘ Percent Pertient Peri 1. Northern High Plains Seller +200 55 50 i 0 l’ 3. Southern High Plains Seller and banks + 45 27 45 2 4. Rolling plains and Prairies Seller + 40 4 l0 9 5. Mountains and Basins Insurance companies and seller + 64 18 6 * 6. Upper Rio Grande Valley Seller -_ 50 l0 10 0 7. Edwards Plateau and Central Basin Seller + 30 2 2 * 8. South Texas Plain Seller + 25 5 l 3 9. Lower Rio Grande Valley Seller and insurance companies + 44 l0 l0 4 l0. Coastal Bend Seller + 60 l0 3 35 ll. West Cross Timbers Seller and banks - 7 14 2 5 12. Grand Prairie Seller + 23 3 l l5 l3. Blackland Seller + 65 3 1 22 14. East Texas Farming Seller 0 16 24 3 l5. East Texas Timber Seller + l2 * * 29 16, P05: Oak ' Seller + 44 2 1 15 17. Coast Prairie Seller +195 6 0 Proporti * Insufficient data. Land Market Adii/ilfy in T ype-offarming Areas Several factors important to a general analysis of land market activity in each type-of-farming area are market price, mortgaged sales, interest rates, prin- cipal lenders, volume of sales, mineral rights and Veterans Land Board sales, Tables 4 and 5. The degree of land market activity in each type-of-farming area is influenced by its location in reference to large population centers and its endowment with natural and man-made resources. The following analysis of land market activity by type-of-farming area includes a general descrip- tion, primary agricultural enterprises and specific factors responsible for changes in land market activity. Northern High Plains This area is composed of all or parts of the 18 most northern counties on the High Plains. The soils are primarily dark brown and reddish brown clay and clay loams. Agricultural characteristics include subhumid climate, low and erratic rainfall, short growing season and the shortest frost-free period of any part of the state. Primary agricultural enter- prises are livestock, cotton, grain sorghum, small grain, vegetables and wheat. Land market activity in 1963 was greater than in 1960, resulting in increased per acre land prices and volume of sales. Large tracts of land were 8 Southern High Plains broken up and sold in smaller units, and ther,’ the anticipation of deep well water for irrigati Eighteen counties located in the southwi quarter of the Panhandle make up the Sou High Plains type-of-farming area. This area is l acterized by clay loam and fine sandy soils, an a i rainfall that varies from 20 inches in the northe part to about 15 inches in the southern and w' parts, an average frost-free period ranging fro to 220 days and a flat topography sloping gen the southeast. Urban populations are concen in Lubbock, Midland and Odessa. Agricultu '\ terprises are primarily cotton, livestock, grai . ghum and cash grain. Increased land prices and volume of sal the result of small tracts of land purchased by e farmers and ranchers for expansion. The g tion of a low water table and increasing cost it viding irrigation water was not evident in the; land market. Rolling Plains and Prairies This area is composed of all or parts of r mately 50 counties in North Central Texas lyii of the High Plains. There are wide differe soils ranging from dark clays and clay loams t’ sands. The topography is cut sharply by many! and their tributaries providing some bottomla cultivation. The climate is subhumid and th age rainfall varies from 28 inches in the east“ inches in the west. The primary agricultural e livestock, cotton, grain sorghum and wheat. p} ality water is available only in limited por- the area. - land prices have remained relatively stable 0. However, volume of sales increased 40 > above the 1960 volume with the average size _'transfer being 130 acres. The land market _'uenced by urban buyers from Abilene, San and Wichita Falls. j- 'ns and Basins laddition to Loving and Ward counties, this l ludes most of the land lying south and west of 0s River and is commonly referred to as the jPecos area. The topography is mountainous at plains lying between the mountains. Some f plains areas where irrigation water is available hly productive. inety-seven percent of the land in farms and l_s is used for grazing. The average size ranch l- cess of 25,000 acres. Cotton is the principal igrown on the irrigated land. The area is __ y populated, but the land- market received Zurban influence in 1963 as approximately 30 "l t of the buyers were listed as nonresidents. i. he decreasing water supply and low quality in the irrigated areas did not seem to be re- “w pin the 1963 land market activity. Rio Grande Valley it his area is located in the most western portion p - "state in El Paso and Hudspeth counties. It is allest type-of-farming area in Texas and is com- ‘of a narrow strip of alluvial soils extending t 75 miles along the Rio Grande river above . below El Paso. The climate is arid, average al rainfall is less than l0 inches and the average V free period is about 240 days. ‘e principal agricultural enterprises are cotton, ’ fa, vegetables, livestock and dairying. All crop isarea are irrigated. - The Upper Rio Grande Valley is one of the few t in the state in which land prices are closely ted to agricultural production. The decrease in if prices in 1963 is thought to be the reflection of r two cropping seasons of a_ low water supply v poor quality water. l1 ards Plateau and Central Basin ' This area is composed of more than 24 million 1'." spread over 30 coimties located directly south of if Panhandle and extending southerly to the Rio nde. It includes most of the Edwards Plateau in the Central Basin. The soils are shallow, stony Ly loams, the topography is rough and broken, the rage annual rainfall ranges from 15 inches in the west to 30 inches inithe east, and most of the area can only be used for grazing. Cattle, sheep and goats are the primary agricultural enterprises. Less than 3 percent of the land is cultivated. Land market activity in 1963 showed a $34 per acre price increase and a 30 percent increase in volume of sales over the 1960 averages.» The increased land market activity is the result of small tracts of land being sold and an increasing interest by urban residents for recreational land. Included in the resources of the area are dense deer and‘ wild turkey populations. For many years this has been a popular deer hunting area, attracting hunters from all over the state. An important source of income on most of the ranches is derived from the leasing of hunting rights. The stable income from hunting rights has been reflected in the land market and is responsible for a portion of the increase in land prices. South Texas Plain This area is made up of 21 of the southernmost counties of the state, including a large part of the Rio Grande Plain. The soils range from dark clays and clay loams to sandy loams and sands, the topogra- phy is gently rolling and brush covered, and the average annual rainfall ranges from 20 to 30 inches. Agricultural enterprises range from intensive irri- gated vegetable and truck farming to extensive live- stock operations. The 37 percent increase in per acre land prices is the reflection of irrigation development and expan- sion for peanut production in the Frio and Atascosa county area, farm and ranch enlargement and some urban influence. Coastal Bend This area consists of seven counties along the Gulf of Mexico from below Corpus Christi to the northern boundary of Refugio County. The soils are dark clays and clay loams, the average annual rainfall is about 30 inches, the topography is relative- ly flat and the frost-free period is approximately 300 days. Agricultural enterprises are primarily cash crops and livestock. Land prices increased~45 percent between 1960 and 1963 while volume of sales increased 60 percent. This accelerated land market activity is a reflection of farm expansion and the urban demand for small tracts of land for rural homesites and recreation. West Cross Timbers Eight counties in North Central Texas make up this area. The soils range from sand to sandy loams, the topography is gently rolling to rough and stony, the average annual rainfall is about 30 inches and 9 the frost-free period is approximately 225 days. Pri- mary agricultural enterprises are beef cattle, dairying, peanuts, fruits and pecans and poultry. The area is geographically locatedso that the impact of urban demand from Dallas, Fort Worth and Waco is reflected in the land market. This urban demand for land for hobby farms, rural home- sites, speculation and recreation is responsible for a large portion of the 39 percent increase in land prices between 1960 and 1963. Grand Prairie The Grand Prairie area is made up of all or parts of 22 counties in north central Texas lying between the West Cross Timbers and Blackland type-of-farm- ing areas. The soils are clays and clay loams, the topography is gently rolling prairie to stony soils on steep slopes, the average annual rainfall is 30 to 35 inches, and the average growing season is 225 to 240 days. Agricultural enterprises are dairying, beef cattle, sheep and goats, cotton and small grains. Between 1960' and 1963 land prices increased 20 percent and volume of sales increased 23 percent. A small portion of the increased land market activity is the result of demand for land for farm and ranch enlargement while the largest portion is the result of urban influence. The metropolitan areas of Dallas, Fort Worth, Houston and Waco provided buyers for 55 percent of the sales occurring in the sample county in 1963. Blackland The Blackland area is composed of all or parts of 25 counties in Central and North Central Texas. The soils vary from blackland to light sandy to shal- low stony, and the topography ranges from gently rolling to steep stony slopes. The various soil types allow a diversification of agricultural enterprises such as cotton, small grains, grazing crops, livestock, dairy- ing, poultry and specialty crops. Net farm income was higher in 1963 than in 1960 because of higher crop yields and an improved cost-price relationship. The 1963 land prices were 36 percent higher and volume of sales were 65 percent higher than in 1960. Eighty-five percent of the sales were for tracts of land less than 150 acres. Many of the small acre- age tracts were used for farm and ranch expansion while others were used by urban residents for pur- poses external to agriculture. The majority of the urban influence was from Dallas, Fort Worth, Hous- ton and Waco. East Texas Farming This area consists of 24 counties in the extreme northeast corner of the state. The undulating to 10 l percent in land prices and 12 percent in vol r rolling topography is composed of low-fertility‘ soils. Since 1930 there has been a continuo _ in the type of agricultural enterprises condu f this area from row crop farming to dairying,; cattle, poultry, timber and specialty crops. if The volume of sales in 1963 was approx' the same as in 1960, but the average per acr’ price was 46 percent higher ihan in 1960. two percent of the transactions were for tr land less than 150 acres in size. The price in was the result of several combined factors: dem r additional land for farm expansion by existing : ers, demand for land by urban residents pri, in Dallas and Houston and demand for lan recreation near the Toledo Bend Reservoir an’ Sam Rayburn Reservoir. i East Texas Timber The East Texas Timber area is composed _, counties in the southeastern portion of the *5 directly south of the East Texas farming area. soils are predominately sandy except in river b t where heavier soils exist, the climate is humid an_ topography is undulating to rolling. Pine a? interspersed with hardwoods cover 75-80 perc the land area. The primary agricultural enter ‘ are timber, beef cattle, dairying, poultry and specialty crops. " Land market activity showed an increase _ sales over the 1960 records. Eighty-two perc‘ the land transactions were for tracts of land less’ 100 acres in size. The price increase and volu land sales increase were primarily the result of f influence emanating from the Gulf Coast area, Houston east to Orange. The dam sites of the; Rayburn Reservoir, Toledo Bend Reservoir i‘ Lake Livingston lie in this area. These huge U of water along with vast pine forests have a trei ous appeal for recreation. In conjunction with .3 purchases for recreation, were purchases for i homesites and speculation. ' Post Oak This area consists of nine counties lying V the hardwood covered portion of the East A Timberlands. The primary soil types are deep‘ with porous subsoils and shallow sandy loams slowly permeable subsoils. Several rivers — the os, Colorado. and Trinity cross or border the-l‘ and provide well drained productive botto u Agricultural enterprises include beef cattle, dal cotton, grain sorghum, corn, forage crops and specialty crops. A large portion of the uplan. g vides excellent deer habitat. i The land market activity in 1963 showed percent increase in land prices and a 44-perc volume of land sales over the 1960 averages. i. conducted in Brazos County that quantita- Qeasured the influence of deer on land values ‘ that the presence of deer in numbers ade- gj_r hunting has been reflected in land prices. ‘ntaining deer in numbers adequate for hunt- p. for $10-$50 more per acre than comparable thout deer. It is assumed that land market (in other counties in the Post Oak area reflects for wildlife in land prices. Prairie _e Coast Prairie is composed of 16 counties 'g the Gulf of Mexico and extending east- __;| om the Guadalupe River to the Louisiana Li The topography is low lying, and practically il types vary from dark clays and light colored sandy soils to alluvial soils. The climate is humid with rainfall ranging from 35 inches in the west to more than 50 inches in the east. A portion of the area is suited only to grazing while other land is suited for row crops and irrigated crops. The pri- mary agricultural enterprises are rice, beef cattle, dairying, cotton, corn, grain sorghum and forage crops. Land prices have risen 34 percent since 1960 while volume of land sales has more than doubled. Much of the area is suited to dry land farming, and adequate water is available for expansion of irrigated farming areas. The increased land market activity was a reflection of dry land and irrigated farm expansion, urban growth and the demand for rural homesites and recreation. l1 a, Cooperative Extension Work in Agriculture and Home Economics, Texas A8¢M University and Unit v Department of Agriculture cooperating. Distributed in furtherance of the Acts of Congress of May 8, V amended, and June 30, 1914. 5M—9-65