Some fields have a spot that consistently does not produce, but don't ignore those acres. If 156 acres average 200 bu. per acre, but 4 acres average 20 bu., the yield on the 160-acre field drops to 195.5 bu. per acre.
While resilient farmland prices were the theme in 2023 and farmers were in the driver's seat in most sales, Jim Rothermich with Iowa Appraisal has recently noticed a couple changes in the market.
In their January 2024 land values report, Farmers National Company shared that the sharp increase in farmland values has slowed, and values are holding strong.
Steve Cubbage explores the true intentions behind foreign land ownership, and if it could be planting seeds of risk for our food security and national security.
In October 2023, Arkansas became the first state to ban foreign-owned farmland. More states look to adopt similar laws, but one policy expert says the issue is rooted in politics and warns of unintended consequences.
The latest barometer, which is based on an economic sentiment survey of 400 agricultural producers each month, recorded a reading of 114 – down 1 point compared to a month earlier.
From a bottle hunter and a pair of plows crafted by John Deere himself to record yields and the return of monster buck antlers, enjoy some of the fan favorites on AgWeb from the past year.
In October, USDA said the average value of U.S. cropland (irrigated and nonirrigated) was $5,460 an acre in 2023--an increase of 8.1% from 2022. High-quality ground is selling for two to three times that.
Following a few turbulent years that included a pandemic, rapid inflation, rising interest rates, a supply chain meltdown and high input costs, agriculture is hoping to find softer soil as it marches through mid-decade.
Tom Askjem disappears under farmland, descends to depths of 13’-plus, and returns to the surface with treasure—bottles and glassware from agriculture’s past.
“We’re getting strong results. High interest rates and sub-$5 per bushel corn is not affecting land market conditions,” says Jim Rothermich from Iowa Appraisal.
North Dakota auction company announces new record-high land sale for cropland in the northeast corner of the state at $17,500 per acre, while in Iowa farmland sales are starting to cool off.
There are efforts underway to mitigate the concern about losing farmland to solar panels. One of these is agrivoltaics, which is combining agriculture with solar installations, and it's already turning heads in Canada.
There’s a new record farmland sale on the books. After a 15-min. bidding war between two area farmers, the gavel fell at $34,800 per acre, which is $4,800 more than the previous record set in November 2022 in Iowa.
Mortgage interest rates just hit a twenty-year high, topping 7%. High borrowing costs will slowly dampen farmer demand for acres as record land prices mean all but a few will have to borrow some to buy.
Doug Hensley from Hertz Real Estate answers the question, "How much do crop prices impact the decision-making process of farmland buyers" and shares how this year is shaping up to be a bit busier than anticipated.
“People sometimes refer to farmland as an investment in gold, plus a coupon,” Bruce Sherrick says. “You get a fairly low annual cash flow, fairly high long-term rates of return and tax advantages to the asset classes.”
Carbon pipelines are stirring up controversy. According to John Phipps, projects like pipelines, transmission lines or solar arrays are bitterly and usually unsuccessfully opposed, but only by those affected.
“If I were picking both from a financial and an emotional perspective, the next place I could put a dollar, I still would favor farmland pretty highly,” Bruce Sherrick says.
John Phipps says there are signs that water is the new oil as water rights turn into water fights across the western U.S. He thinks it's a battle that could only heat up in the coming years.
Roughly 37.6 million acres of U.S. ag land is foreign owned, according to USDA. However, select purchases of U.S. land could come to an end following a Senate vote this week.
The House Select Committee on the Chinese Communist Party (CCP) introduced an act to prevent foreign adversaries from exploiting U.S. land near security sites, and would push a review of current ownership in these areas.
A mid-year report from Farmers National shows land values are increasing by single digits instead of the double digits common in 2021-22. But the company says it has a strong roster of listings headed into late summer.
Under the bill, the USDA and the FDA would become members of CFIUS and their powers would be expanded to better consider ag needs when it decides if a purchase would create national security risks.
The 2023 crop is in the ground and growing steady, just like ag’s financial risks this year, according to Alan Rosendahl, farmer and senior vice president at Iowa State Bank in Kesley, Iowa.
As interest in outdoor activities like hunting and hiking continues to rise and profit margins for farmers and ranchers continue to narrow, landowners are connecting the dots and making extra money through LandTrust.com.
Despite the positive sentiment, local community bankers report concerns about lower commodity prices, the ‘big bank mess’ and another potential rate hike in June by the Fed.
Paul Schadegg, with Farmers National Company, shares his perspective on agricultural real estate demand, the impact of interest rates on the market and the outlook for land values later this year.
The rapid runup in land values caused farmland values to hit historic levels over the past two years. The dynamics are starting to shift, as input prices, interest rates and commodity prices are eating into outlooks.
