Farmland market remains strong in early ‘23
A farm real estate specialist says the farmland market continues to be strong despite high interest rates.
Tim Meyer (pictured above) is a site leader and realtor with Steffes Group.
“Operating rates have gone from 3.5% to 8%,” he said. “Ground has gone from 4% to 8%. That’s a big swing. If you’re talking $15,000 ground, it’s $600 more interest a year and that’s going to have an effect. I think the commodity prices have outweighed the interest rates up to this point.”
But he tells Brownfield land prices could swing lower later in the year.
“We’re going to see it geographically first and in lower-quality ground first,” Meyer said. “But I am seeing a little bit of softening here in the last couple of weeks.”
Meyer says demand for farmland has been high and prices reflect that.