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Producers cautiously optimistic about the future of farmland values

An ag economist says farmers are cautiously optimistic about where farmland values are headed according to the latest Purdue University/CME Group Ag Economy Barometer.  Jim Mintert, director of Purdue’s Center for Commercial Agriculture, says producers are clearly not as confident as they were earlier.

He tells Brownfield the raw responses to the survey tell a more robust story.  “A couple of years ago, 59% of the people in the survey said that they expected to see farmland values increase in the next 12 months. This month, that was down to 35%,” he says.  “At the same time two years ago, only 6% of the people in the survey said they thought farmland values were going to go down. This month, that was 14%.”

Overall, he tells Brownfield, the Short-Term Farmland Value Expectations Index remains positive. “However, there’s clearly a less positive outlook among producers about what’s taking place with respect to farmland values,” he says.

Compared to December 2022, Mintert says the short-term index was down 3 points, while the long-term index was 9 points higher.  He says the moderation in producers’ interest rate expectations over the last year could help explain some of the changes in sentiment.

AUDIO: Jim Mintert, Purdue University