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Ag economist says plan for farmland value declines

An ag economist expects rising land values to hit a wall as interest rates continue to increase.

“When those rates go up, farm values tend to go down.”

Matthew Gammans with Michigan State University tells Brownfield farmers need to prepare for uncertainty.

“We don’t really know where the Fed will go,” he says.  “We think we have some idea but there’s actually uncertainty about exactly what rate that will end up at.”

His research found Michigan farmland prices increased as much as 15 percent in the past two years.

“Some of it is from low-interest rates and some of it is from people getting more bullish on commodity prices,” he explains.

Gammans is currently conducting an online survey for 2022. Find more details here.

Brownfield interviewed Gammans during the recent Michigan Ag Credit Conference.

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