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Outside influences that could impact farmland values in 2018

Interest rates and tax reform are two factors that could impact the value of farmland this year.

Randy Dickhut with Farmers National Company says the stock market is hinting at rates going up a bit faster than originally thought.

“And we know that over the last few years, low interest rates have sure helped support land prices and took them higher than we might’ve thought.  So as interest rates start to creep up and depending on how fast that happens, that will definitely have an impact on land values too.”

He tells Brownfield the new tax law includes some subtle changes that might indirectly affect farmland values.

“I’m not sure there’s a lot that will directly affect land ownership.  There are some provisions in there currently that can affect farm and ranch operators and how they recognize income, and what they can shelter from taxes and so forth.”

Dickhut says trade uncertainties and questions about the next Farm Bill are other outside influences that could hurt land prices in 2018.