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Survey: more producers expect farmland values to weaken in the next year

More producers are saying they think farmland values could weaken in the next 12 months, according to the latest Purdue University/CME Group Ag Economy Barometer.

Jim Mintert, director of the Purdue Center for Commercial Agriculture says producer sentiment has changed in the last year.  

“A year ago, 51 percent of the people in the survey said they expected to see higher farmland prices in the next 12 months. In this most recent survey that was down to just 33 percent,” he says. “The percentage of people who said they thought farmland prices would decline in the upcoming 12 months a year ago was only 6 percent and this month it was 14 percent.”

He tells Brownfield, “that doesn’t mean we won’t continue to set some records here in the early spring when we hear the auction reports, but it does suggest that there are more people who think that maybe this is getting close to the top.”

The Short-Term Farmland Value Index declined slightly to 119 while the Long-Term Farmland Value Index fell 5 points to 137.

Both indices remain above 100, indicating a positive outlook on farmland values, but the percentage of producers who said they expect values to decline over the next five years reached 19 percent, the highest percentage since this question was first routinely included in survey in 2019.

Audio: Jim Mintert

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