Farmland market sees downward pressures, prices remain high
An ag economist says he expects the rate of farmland price increases to slow down.
Gary Schnitkey with the University of Illinois says two key factors could impact the market. “Cash rents are likely to stabilize to come down into 2024 as we see returns decrease to agricultural land,” he said, “and also the rising interest rates are putting downward pressure on farmland prices.”
He tells Brownfield farm income is another concern. “As we see corn and soybean prices come down, we’re going to see less income in 2023 and perhaps even moving into 2024.”
But, Schnitkey says historical relationships suggest large farmland price declines will not occur soon.