Regenerative ag could carve out valuable farm real estate niche

The chief appraiser for a farm credit institution wonders if regenerative agriculture might become a major factor in farmland values.

Mike Morris tells Brownfield Compeer Financial is looking at how the increasing emphasis on sustainability and carbon sequestration will influence the ag real estate market.

“I think it might (but) I don’t know yet (because) there’s not enough evidence. But I think that’s kind of the next wave of what I see from my chair.”

He says consumers seem to be more focused on how their food is produced and less concerned about price and flavor.

“I think people feel invested in their food, if you will, so I think we’re going to see some potential practice changes in ag.”

Morris can envision land deemed “sustainable” carving out a valuable niche.

“There are going to be groups coming in that buy farmland (and) are going to want something that’s been in that regenerative practice for a certain period of time, and I think they’re probably going to be willing to pay a premium for those kind of properties.”

He says while typical buyers might not prioritize sustainability, they’ll still be competing in the market with those that do.

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