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Farmland values expected to slowly decline further in 2018

An ag real estate professional predicts farmland values will continue downward, following unexpected stability at the end of 2017.

Randy Dickhut with Farmers National says farmland values have been decreasing the last four years, although strong yields this past fall provided a stable area for many parts of the Corn Belt.

“But as we move into 2018, I’m kind of expecting a few more farms come up for sale for financial reasons where that farm operator is under some stress or whatever it might be.  And trying to improve their financial condition.”

He tells Brownfield depressed commodity prices and associated low farm incomes are the primary drivers of softening farmland values, but Dickhut is also watching other possible influences.

“That could be trade policy if (that policy) doesn’t go as ag would like it to.  That could put a further damper on enthusiasm for buying land.  And if investors (both) individual and institutional would slow up for some reason.  But I don’t necessarily see that.”

Dickhut actually expects more investor interest in the new year as the farm economy continues to struggle.

He says unless something triggers a change, farmland values will probably remain on a gradual descending trajectory for at least two more years.

 

 

 

 

 

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