News

Farmland market driven by commodity prices again in 2023

A farm real estate expert believes commodity prices will continue to drive farmland values in 2023.

Beyond that, Paul Schadegg with Farmers National Company says supply and demand will be key.

“That limited supply of land coming to the market is going to play a big part in how those values are maintained, or even moved up if that’s the case.”

He tells Brownfield other factors will be interest rates and input costs.

Schadegg says sales volumes are a bit off last year’s pace but well above the five-year average and farmland values are maintaining.

“My anticipation is we’ll start to see less and less of those real exceptional sales, because I think people, when they get to those levels, they’re probably going to take a step back and decide maybe (they) better wait. Or maybe this is not an investment (they) need to make.”

Schadegg says if there are changes to the farmland market, they will probably be more incremental than abrupt.