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GreenStone reports stable land prices

A recent analysis of farmland values in Michigan and northeast Wisconsin by GreenStone Farm Credit Services finds prices have remained stable despite the lower farm economy.

“Good land is still selling very well; average land or below average land is where we’ve seen some significant softening of prices.” 

Executive Vice President Paul Anderson tells Brownfield 2019 county sales data found only marginal changes in values.  The Saginaw Valley in Michigan has seen the largest adjustment lower which he says is directly tied to sugarbeet prices.

“Their crop prices per ton there have dropped significantly and therefore there’s less free cash available to buy land and finance it.”  

He says farmland values in southern Michigan not used for vegetables are around $3,500 per acre up to $7,200 in the northern Thumb.  He says cropland in northeast Wisconsin influenced by urban populations can cost up to $10,500 per acre and as low as $4,700.

Anderson says the value of dairy facilities in the Great Lakes are declining. “There was no change over this past year, but over the past five years, they have declined almost 12 percent in Michigan and almost seven percent in Wisconsin.”        

The number of land sales is also trending below the 10-year average which Anderson says is typical in a corrective market.