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Land values soften, but no crash seen
Although some land values have softened lately, a good harvest should keep prices from falling much more.
“Farmland is what it earns,” said Dale Aupperle, who tracks land values for Illinois farm managers. Despite softening land values the last six months, and commodity prices that have fallen in reaction to the apparent good crop, Aupperle told Brownfield Ag News at the Farm Progress Show that it is earnings that will drive farmland values.
“We’re going to make some of our money on bushels per acre this year,” said Aupperle. “The decline in net farm income is not going to be as dramatic as some people thought.”
Aupperle sees no bursting bubble. Although land prices may soften, he says the factors that could bring land prices down quickly do not exist today.
“It doesn’t mean that we couldn’t soften,” he said, “but we don’t see a crash.”
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