Farmland Value Development in the USA – AG INFORMATION NETWORK OF THE WEST

Value development of farmland in the USA

Over the past 15 years, American agriculture has experienced two periods of high agricultural yields that have led to increases in farmland prices. Randy Dickhut, farmland analyst at Ag Economic Insights

“The first increase was increased to seven in 2005 with the expansion of ethanol production and soybean demand from China. This increased the demand for these areas worldwide and increased grain prices. This increased farmers’ incomes, which in turn drove up land prices. So farmers’ incomes went down again. Land prices fell somewhat.”

According to Dickhut, this was followed by a phase from 2020 to 2022 in which agricultural incomes rose due to good livestock and cattle prices, which in turn led to a renewed increase in land prices.

Now we’re seeing lower commodity prices and higher inflation, which is now leading to higher interest rates. So there are a lot of questions about the land market and land prices. You know, there’s some softening. Is it going to go down further or not? Time will tell. But there’s not a lot of supply to sell. It’s not excessive and the demand is sufficient, yes.

Again: Randy Dickhut, Ag, Economic Insights, Farmland Analyst.