News

Ag economist says producers concerned land use pressures will impact Midwest farmland values

An ag economist says some producers are concerned continued development will impact the ag land market.

Michael Langemeier is the director of Purdue’s Center for Commercial Agriculture.

“Usually, the index of current conditions is closely linked to the farm capital investment index, but it’s also usually closely linked to short-term land value expectations,” he says. “This month, they moved in opposite directions.”

He tells Brownfield producers surveyed in the latest Ag Economy Barometer say development pressures will likely make land values trend higher.

“Usually when you have weak income like this, you see downward pressure on land values and cash rents,” he says. “That leads me to believe that it’s helping support land values at this time.”

Langemeier says higher interest rates and lower net farm income are also currently influencing ag land values.

The Barometer is a nationwide measure of the health of the U.S. agricultural economy and surveys 400 agricultural producers on economic sentiment each month.

AUDIO: Michael Langemeier, Purdue University