Farmland Price Outlook

11:48AM Dec 04, 2019
How much do you expect the value of farmland in your area to change in 2020??
How much do you expect the value of farmland in your area to change in the next year?
( Photo: Lindsey Benne; LandOwner/Pro Farmer cash rent and land values survey )

For 2020, expect more of the same. Farmland values and cash rent levels should remain flat, according to the LandOwner/Pro Farmer cash rent and land values survey, which polls U.S. landowners and farmers.

The 2019 survey found a modest amount of optimism, as well as a decline in pessimism about the year ahead compared to prior years, says Mike Walsten, consultant and columnist for LandOwner.

“The survey found 55% of respondents expect land values will remain unchanged in 2020,” he says. “That’s up from last year’s 48% and 162% higher than the response reported in 2014. In addition, only 34% expect land values will decline in 2020, down from 48% in 2018.”

Just under half of respondents said they will be in the market to buy farmland in 2020, while only 6% will be in the market to sell farmland.

Cash rents are expected to remain stable in 2020. The majority of respondents, 66%, expect cash rents in their area to be unchanged next year. That’s up from 54% in 2018.