News

Farmland values holding steady in Indiana, Ohio

According to a recent survey from Farm Credit Mid-America shows farmland values in the Indiana and Ohio are holding fairly steady.

Dennis Badger, vice-president of collateral risk management says he was pleasantly surprised at the findings.  “Compared to some of the other Corn Belt states, like Iowa and some of the other large producers, they would see near double digit declines,” he says.  “A negative 3 percent for Indiana was actually very positive for us.”

He tells Brownfield farmland values in Ohio, Kentucky, and Tennessee actually increased slightly.

Badger says he doesn’t expect a rapid rebound in commodity prices or land values anytime soon.

But because farmers have diversified income sources, he says they have become less reliant on commodity prices and that has helped farmers better manage risk.  “Given their current financial situation – as long as they can survive the next 3 to 5 years – given the decline in income, then they usually are in a good position for the lighter years,” he says.  “In many respects it creates buying opportunities provided they are in a stable financial situation.”

USDA projects higher debt levels for 2016 and Badger says with higher debt-to-asset ratios, farmers should approach any new purchases or rental opportunities with caution.

AUDIO: Dennis Badger, Farm