Stability of farmland market continues to surprise
November 12, 2019 By Ken Anderson Filed Under: Ag economy, News
The stability of the farmland market continues to surprise many people.
Nathan Kauffman, an economist with the Federal Reserve Bank
of Kansas City, says it’s a matter of supply and demand.
“There has been sufficient demand for land at a time when
there still has just not been a lot of land being sold,” Kauffman says. “If
that environment were to change and, for whatever reason, we were to start
seeing more land being put onto the market, then we maybe question whether or
not the demand that is there is strong enough to keep prices at the level that
American Bankers Association economist James Chessen says a
recent survey of ag bankers shows they expect some more slippage in farmland
prices in 2020, but nothing major.
“There seems to be a fair amount of positive feelings about
land values—that they seem to be okay,” Chessen says. “Now what that means is
there’s an expectation that they’re likely to go down, but not as much as
Chessen says land value expectations vary by region. But he
says, in general, ag bankers expect more property to be offered next year,
which could put more downward pressure on prices.
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