The Farmers National Company says the farmland market seems to be moving into the new year maintaining the value increases it’s built during the last three years. That stability is in place despite increasing pressure from declining commodity markets, rising interest rates, and inflation.
The sharp increase in land values last year which was driven primarily by strong commodity markets has slowed, but the value is holding steady. Buyer demand remains strong for good quality cropland in the Midwest, while the supply of available land remains limited.
“These factors further play into the dynamics of the supply-demand scenario and remain a large factor in supporting current values in early 2024,” says Paul Schadegg, senior vice president of real estate operations for Farmers National. Local farmers/operators continue to be the principal buyers in almost 80 percent of Farmland’s sales transactions. “Available cash plays a role in buyer’s aggressiveness when bidding on land.”
(From the National Association of Farm Broadcasters)