Managing for Profit
Are farmland prices due for a correction?
The market for farmland remains red-hot, but experts disagree on if and when there will be a correction—and if so, how big that correction might be.
Iowa State University economist Michael Duffy recently told the New York Times that if the price of corn falls to $4.50, farmland values could collapse by as much as 25 percent. Other economists have predicted a more gradual retrenchment of 30 percent or more over the next few years.
But others in the farmland business don’t see a correction happening anytime soon. They include auctioneer Jason Smith of Mondamin, Iowa, who sells farmland all across Iowa, and ag lender Bob Schmidt, a senior vice president with Farm Credit Services of America based in Pierre, South Dakota.
Hear comments from Smith and Schmidt on today’s Managing for Profit.