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Land market outlook for 2023

A farm real estate specialist suggests farmland values have peaked.

Tim Meyer with Steffes Group says he expects the farmland market to remain strong through the summer despite higher interest rates.

“There’s a lot of cash and there’s just a much bigger demand for land than there is money,” he said. “Folks are valuing ground more than they are valuing their own money.”

But he tells Brownfield land prices have softened for lower-quality ground.

“Sentiments could change come fall,” Meyer said. “We’ll just have to see if it’s directly related to the commodity price.”

Meyer says farm finances are generally strong, but concerns remain about elevated production costs.