Farmland market might be leveling off

An ag real estate expert anticipates the farmland market to begin flattening out.

Compeer Financial chief appraiser Mike Morris says rising interest rates are a headwind, but a strong cash presence remains.

“A lot of potential buyers still have a lot of capital they can spend on real estate, (and) commodity prices of course are staying strong. Or at least are at higher levels than they have been historically.”

But he tells Brownfield input costs will squeeze margins going into next year.

“I’m not predicting any significant decrease in land values, but I think it’s kind of, I won’t say stable, but seems to have somewhat leveled off.”

Morris sees parallels between the current runup in farmland values and the last peak a decade ago and says the market “had a soft landing” back in 2013.

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