The impact of the current trade climate on land prices remains unknown, but Farmers National Company says time will tell.
Farmers National says there is no easy answer as to what effect trade issues are having on land prices currently. The company says many factors influence local land values. Supply of land for sale and the level of demand are key factors influencing land prices along with the income generated by the land and interest rates. However, when noticing low commodity prices, the company explains that land is a long-term investment and its true value is an expression of future revenue streams. The group says uncertainty of future events causes today’s caution but adds “stay tuned to see what plays out over the next few months” in agriculture and the land market for the answer.
From the National Association of Farm Broadcasting News Service.