In news that should be positive for those who use farm equipment in the state, the Federal Reserve Bank of Dallas reported that Texas did not see the value of its agricultural land drop in 2008.
According to the bank, Texas was one of eight states that did not see farm land values fall during the year. Though the Lone Star State followed the national trend for 17 years, it managed to avoid the decline seen across the country during last year.
The bank noted a number of factors may have played into Texas avoiding the devaluation of farm land seen in the country. One reason is that the state's economy did better than the national average. Furthermore, prices for commodities produced by the states fared better than agricultural products in other areas of the country.
"Livestock prices remained steady in 2008 and grain prices increased, supporting land values by pro¬viding healthy incomes for Texas ranchers and farmers," a report from the bank noted.
However, it may remain to be seen if Texas will hold up as well in 2009, as rough weather conditions have hampered some farmers and ranchers when it comes to production.