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According to the Farmers National Company, the agricultural land market has been exceptional over the past five years. Value gains show up in all classes of land in every region of the country.
“A lot has changed in the last 12 months, and even more has changed in the past five years,” says Paul Shadegg, senior vice president of real estate options. “Moving into the second half of 2023 and the first half of this year, we’ve experienced significant increases in interest rates, declining grain markets, and inflation.”
Despite the negative pressures, Shadegg says the land market has been relatively resilient. However, it does show signs of settling in general, including single digit decreases in specific areas. As buyers consider land purchases during the second half of 2024, the additional expenses for interest and lower commodity prices will be at the forefront of decision-making.
“Ag land has never been more valuable,” adds Shadegg.
(From the National Association of Farm Broadcasters)