WASHINGTON, D.C. (RFD-TV) — A number of agricultural bankers believe interest rates will trend higher for some time, while farmland values could remain strong.
At a recent industry panel, Farmer Mac Chief Economist Jackson Takach said strong demand for farmland could be offset by an increase in properties available for sale.
“The room overwhelmingly said increase, so they think land values are going to go up. The panel that we had up on the stage disagreed and said, ‘Hey, there’s supply and demand equilibrium concerns.’ Like the demand for farmland seems really, really solid, but could there be an increase in the supply of available farmland for sale? Maybe it’s farm exits, or maybe it’s folks who are in need of liquidity who decide to sell off a piece of their farming operation. All that might lead to higher supply, which kind of points to an equilibrium, right? Maybe full land values trade sideways. Some markets will go up, some markets will go down a little bit, but overall, will kind of trade sideways.”
Analysts will be tracking farmland availability in the coming weeks, with expectations that more farms could come onto the market this fall.
