News

Multiple factors could weaken farmland values in 2023

Several factors could weaken the farmland market in 2023. 

Paul Schadegg, senior vice president with Farmers National Company, says values remain strong heading into the new year.

“But with that being said, we’re very cautious about the outlying factors of interest rates, inflation, world events, and commodity markets if there’s a change.”

Speaking to Brownfield during the National Association of Farm Broadcasting Convention in Kansas City last week, he says rising interest rates have not had a major impact yet.

“Cash is definitely king out there right now. When most of the land transactions are cash transactions, if they do leverage the land it’s a very small amount.”

But with interest rates soaring past seven percent, Schadegg says there will be a tipping point down the road.