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Survey: producers are more optimistic about farmland values

Ag producers are more optimistic about short- and long-term farmland values, according to the latest Purdue University/CME Group Ag Economy Barometer.

Purdue’s Jim Mintert tells Brownfield “commodity prices have caused people to think farmland prices have some more upside left. When you look at the auction results from this winter, the auctions have been very strong with a number of auctions basically setting record highs. So, people are still pretty optimistic about farmland values.”

The Long-Term Farmland Value Expectation Index, a five-year outlook, rose nine points to a reading of 154. The Short-Term Farmland Value Expectation Index, a look at the next 12 months, climbed three points to 145.

But, he says producer sentiment is not as bullish as it was in the fall.  

“I think that’s a reflection of the fact that farmland values have already gone up so dramatically over the last 12-18 months and people are asking themselves how much more can they go up,” he says.

The Ag Economy Barometer is a monthly national survey of 400 U.S. agricultural producers.

Audio: Jim Mintert