What's next for land values
Challenges that could put pressure on land values include the overriding potential for depressed farm incomes and the further decline of working capital for producers. Will lower farm incomes overcome the low interest environment to put pressure on farmland values? Will farm finances be helped enough by the additional infusion of federal cash payments to producers to maintain financial stability? Will there be more land come onto the market due to financial pressures that could tip the supply and demand equation?
“It is too soon to accurately answer what’s next for the land market except that agricultural land will continue to be bought and sold. Land passing to the next generation is a constant that remains in play no matter what. Decisions made by inheritors of land, producers, lenders, legislators and investors will come together over the coming months to provide the answer to what’s next for land values,” said Dickhut.