Farmland value expectations continue to hold
Producers remain optimistic about farmland values according to the latest Ag Economy Barometer from Purdue University and the CME Group.
Jim Mintert, head of Purdue’s Center for Commercial Agriculture says that was a little surprising. “In the context of, we’re talking about tightening margins, we’re talking about concerns about rising interest rates,” he says. “Which normally you think would impact the farmland value expectations.”
So why are producers so optimistic? He tells Brownfield farmers point to non-farm investor demand. “That continues to be the number one reason that they cite with respect to why they think farmland values are going to continue to improve,” he says.
And, Mintert says, record and near-record land sales continue to be reported around the Corn Belt. “That’s feeding into the expectations a little bit,” he says. “It’s going to be interesting to see what happens to that farmland index as we maybe turn the corner into 2024.”
The Short-Term Farmland Value Expectations index remained unchanged for September at 126, while the long-term index rose 2 points to 153.
AUDIO: Jim Mintert, Purdue Center for Commercial Ag