Lower crop prices are not just affecting producer profitability. The declines are leaving farmland analysts wondering how the land market will respond, and farmland analysts say it is a situation where only time will tell.
“Now we’re starting to see lower commodity prices, higher inflation that’s now backing off the higher interest rates. So there are a lot of questions about the land market, and land prices. You know there’s some softening. Will it soften some more or not? Time will tell, but there’s not a lot of supply for sale, it’s not overly large and there’s good enough demand yet,” said Randy Dickhut.
Farm income has seen its highs and lows in recent years with two notable rebounds. Analysts say each one has led to an increase in land prices.
