Wisconsin Economy Shrinks Farm Acreage
3/20/99
reprinted with the permission
of the Milwaukee Journal-Sentinel

SHAWANO, Wis. (AP) -- A healthy Wisconsin economy that draws applause from state officials and business leaders has a side effect of converting farmland to purposes other than agriculture, a farm agent said.

Portage County in central Wisconsin, known for sandy soils in which potato farming is prosperous, is a rarity because its average price for buying land for agriculture was greater than for other development, a study of 1997 statistics shows.

Converting farmland to urban sprawl and commercial development has accelerated since 1993, mainly because Wisconsin's economy is doing well, says Joe Stellato, crop and soil agent with the University of Wisconsin Extension in Shawano.

"It's healthy for the economy," Stellato said. "It's not necessarily healthy for the farm economy."

High real estate prices are good for land owners who sell but are a handicap for beginners who want to get started in farming, he said.

There is often an incentive for farmers to sell their land for purposes other than farming.

Some people pay big prices even for wetland because they want it for hunting, Stellato said.  State figures for land purchased without buildings and improvements show Shawano County had 2,478 acres sold in 1997 with 90 percent of the acreage retaining its farm use. The price averaged $828 an acre.

The 10 percent of Shawano County sale land diverted to other uses averaged $921.

Neighboring Langlade County had similar figures. Closer to Green Bay and Appleton, however, 67 percent of Brown County's 1,081 acres sold was diverted to nonfarm use and averaged $5,470 an acre while land remaining in agricultural sold for $1,302.

"With Shawano and Langlade staying in agriculture, that's good news for me and the farming community," Stellato said.

In the Stevens Point area, Portage County agricultural land was being diverted to other business at a rate of 46 percent of farmland sales.

The 54 percent of Portage's land kept in agriculture sold for $808 an acre in 1997 while the 46 percent sold to other uses averaged less: $758 an acre.

"They're potato and vegetable growers," Stellato said, "and their land usually can be irrigated."

Waupaca County is an example of a farm-oriented county that is close enough to urban growth (the Appleton-Oshkosh area) to affect its farmland prices, Stellato said.

Its 1,993 acres sold for an average $900 when kept for agricultural use and $1,345 when diverted.

Wisconsin's diversified economy of manufacturing, tourism and agriculture can absorb a farm-price downturn easier than some states, Stellato said, citing the recent drop in the prices that dairies pay farmers for raw milk.

"A state like Iowa gets hit harder when farms suffer" because of its concentrated farm economy, he said.


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