Farmland values have held steady so far this year despite numerous challenges like tight margins, high interest rates, and near break even commodity prices.
While overall demand may be down slightly, farm acquisitions are still occurring.
A farm management professional in Iowa says adequate demand coupled with reduced supply is the reason.
While Corn Belt prices are holding strong, in the southeast specifically, farmland values only continue to climb.
Kevin Kim, a Mississippi State University Extension Economist, echoed similar thoughts.
Strong demand, with limited farmland supplies, caused ag land prices to soar by nearly 8% in 2023! In the last decade, the Southern Plains states experienced 50% increase in cropland values, the highest in the country.
Kim shared that farmland accounts for nearly 80% of the average farm balance sheet, and these prices are good news for farmers as 2024 profitability is expected to trend downward.
