GAINESVILLE, GA. (RFD NEWS) — Southeast farmland is facing competing pressures from families trying to keep land in agriculture, utilities building new transmission infrastructure, and a machinery market still working through declining values.
Daniel Boring with the American Society of Farm Managers and Rural Appraisers (ASFMRA) joined us on Wednesday’s Market Day Report to discuss the challenges facing farmland owners and agricultural markets in the Southeast.
Conservation Easements
Georgia has established a farmland conservation fund program to help protect agricultural land.
Boring said conservation easements are falling into two broad categories, with traditional family-farm easements generally holding up better than some other types of transactions.
“We’ve had a number of easements that have been done by syndicators and so forth,” Boring said. “These are not holding up at all. The IRS is pushing back and knocking most of these down.”
He said traditional family-farm conservation easements have been more productive, while funding remains an important factor in determining how many projects can move forward.
Boring said Georgia’s program approved six easements totaling about 1,000 acres, while roughly $13 million worth of easements had been proposed.
A Caution on Transmission Lines and Farmland
Georgia Power is also building new transmission infrastructure across the state, creating another consideration for agricultural landowners.
Boring said landowners should understand exactly what an easement offer covers before accepting it.
“You don’t want to accept the first offer,” Boring said. “You really want to understand what that offer entails.”
He said utility easements can affect the entire property, not just the portion where the transmission line is located.
An easement through the center of a farm could affect irrigation pivots, aerial spraying or access to other parcels, Boring said. It could also change the potential use of other parts of the property.
“You really want to look at the effect of the easement on the total farm before and the total farm after,” he said.
Boring said landowners should consider getting legal and appraisal assistance to evaluate the full impact of an easement.
“Get a really good attorney,” he said. “Get a good, solid analysis appraisal before and after and make sure that you’re looking at the total effect on the farm, not just the individual component that they want to bring the easement through.”
Used Equipment Values Sink Further
Used farm equipment is also facing pressure after several difficult years for Southern row-crop producers.
Boring said equipment values are declining, with some segments potentially bottoming out later in 2026 and into 2027.
“We’re seeing with the equipment, the values are going down,” Boring said.
He said specialized equipment with smaller regional markets, including peanut harvesters and cotton equipment in Georgia, is facing additional downward pressure.
Lower farm income is also contributing to more farm sales, which can add equipment to the market and put further pressure on used-equipment values.
Boring said he does not expect a dramatic improvement in used equipment values through 2027.
Drought Pressures Cattle and Pasture Values
Cattle producers in the Southeast are also dealing with drought and higher costs, slowing herd rebuilding.
Boring said higher feed, water, and other costs are pressuring producers, while land values do not always reflect those increased expenses.
“It is really tough,” Boring said. “Obviously feed is up, water’s up, all the costs are up, but the value sometimes isn’t reflected in the cattle.”
Boring said he hopes improving drought conditions in the Southeast will eventually support cattle markets and lead to changes in pasture and ranch values.
LEARN MORE: www.asfmra.org
