Lower commodity prices and high interest rates weighing on farmland market
Lower commodity prices and high interest rates are weighing on farmland across the Midwest.
Compeer Financial certified appraiser Jeremy Fluegge covers four counties in south-central Minnesota says most sales have been flat to slightly lower in recent months.
“I’d say the two main drivers for the market are lower crop prices and higher interest rates.”
He tells Brownfield new crop corn and soybean prices are considerably lower compared to a year ago.
“And we’re seeing operators trying to juggle the higher interest rates with consideration to how much they are willing to pay for land, or to rent land.”
He says an outlier has been areas that didn’t have much sale activity the past two years continue to show very strong farmland prices.
Fluegge made these comments during an upcoming Compeer Financial appraiser podcast, a content partnership with Brownfield.