What This Land Value Survey Revealed

February 17, 2017 11:18 AM
What This Land Value Survey Revealed

At the 2017 National Farm Machinery Show in Louisville, attendees got to see tons (literally and figuratively) of farm machinery. But that’s not all that was at the event, as Tyne Morgan, host of U.S. Farm Report, soon learned.

Morgan caught up at NFMS with Dennis Badger, vice president at Farm Credit Mid-America, about the results of a recent survey his company conducted about farmland values.

“Did you find that land values are continuing to decline overall, or are you seeing some states actually increase?” Morgan asked Badger.

His response? “We actually have a little bit of a mix."

Here are a few highlights of what this survey revealed:

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Spell Check

Eastern, NE
2/18/2017 11:21 AM

  Too much stupidity in the way prices for all fixed assets were run up. Land, machinery, etc. The ag-sector saved this country's ass in 2009 to 2013. If interest rates get back up to a "normal" level, tax laws get rewritten and traditional vehicles of investment regain some of their luster, land values will tank. You have to make things work for you. If $12,000 an acre works you, go for it.

bad axe, MI
2/17/2017 05:50 PM

  Any lending institution borrowing money against farmland isn't going to tell anybody that there land loan portfolio is going to hell in a hand basket. The problem is when the federal reserve comes out and says that only 14% of all farm land transfers had a cash component , whether it was a cash down payment or a all cash deal. That means the 86% of farmland transfers were purchased with all borrowed money . So if that's the case you can dictate as a lender the farmland market by just dumping more money into. With the 68 trillion dollars of credit market debt there is certainly plenty of deposits at the bank to do that. The problem I see is when you see farmland in Russia selling for $306.00 per acre and were paying $12,000.00 per acre I think the whole thing is in trouble.

stephen J Prissel
Ripon, WI
2/17/2017 09:15 PM

  So what I got out of this report is land values depend a lot on Regional prices received, cost of production etc. So with inflated years over all in some regional areas price are coming more in line with what they should be? So when cost of production goes down land values will either stabilize or go up? Cyclical like everything else. I am not sure we are in trouble. Most farmers will not spend $12,000 per acre until they have the equity or better yet the cash flow from high value vegetable crops that will help them pay for such land that also may be next door to their operation. The latter rate is an anomolly that is i think rare. $12,000 cannot pencil out for only grain farmers.


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