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Real estate expert says several factors impact farmland prices

An agricultural land marketer says farmland values have remained strong across much of America. 

R.D. Schrader with Schrader Real Estate and Auction Company specializes in ag land sales in 40 states.  He tells Brownfield land values leveled off last summer but have gone up as many farmers entered the buyers pool after a good 2023 crop. “Harvest was enough better in 2023 than what was expected. A lot of that cash has been poured back into land values since harvest.”

Over last four years, Schrader says there has been tremendous appreciation, with some pockets seeing 50% more value, and it appears there are fewer buyers, but the demand for land remains strong. “Those folks that were depending on borrowing a good chunk of the money are being impacted by these interest rates, but there’s enough folks still with cash looking to put into land that overall, it hasn’t slowed down these values much.”

Schrader says there have been three good years for farm income in many pockets of the corn belt, but less cash and higher interest rates will impact the land market.  Another factor Schrader says could lower land values is if prices on the commodity markets don’t go up in the next few months. 

Schrader says many sellers jumped into the market when prices were high a few years ago, so there are fewer properties available now, which supports land values.  He says agricultural operators account for most of the farm purchases, but there are still many investors buying ag land.

AUDIO: R.D. Schrader discusses ag land values and price influencers with Brownfield’s Larry Lee