Farmland Values Higher in First Half of 2022
Farmland prices continued higher through the first half of 2022. Randy Dickhut, senior vice president of real estate options for Farmers National Company, says higher commodity prices helped push land values even higher.
Dickhut… “They were going up because of the high grain prices and the outlook for continued higher than normal or average grain prices due to the Ukrainian conflict because everybody believed that, hopefully, that's resolved, and peace returns sooner than later. But there's still going to be longer-term ramifications about getting production back up, and exports back up, and what had been lower interest rates earlier on were propelling the land market.”
Dickhut says prices don’t seem to be rising quite as fast a little more than halfway through the year.
Dickhut… “Now, we're seeing a little more variability. We're seeing some new records that are just off the charts. And then, we're also seeing a few places, maybe at an individual auction or something, where they're just a little more hesitancy, so it didn’t set a new record. So, it's a little off, maybe, what it would have sold for back in February or March after that war started.”
Dickhut added that prices for the highest-quality farmland continue to set new records.