News

Farmers optimistic about farmland values

An ag economist says the long-term expectations for farmland values continue to rise, according to the latest Purdue University/CME Group Ag Economy Barometer. 

Jim Mintert, head of Purdue University’s Center for Commercial Agriculture says nearly two-thirds of respondents expect farmland values to increase over the next five years.  “People who say they expect to see farmland values rise over the next five years continue to point to two key factors,” he says.  “Non-farm investor demand is the biggest choice and the follow-up is inflation.”

But, he tells Brownfield producers aren’t rushing out to make large purchases, like farmland.  “Seventy to seventy-five percent of people in the survey have pretty consistently been telling us they think it is a bad time to make large investments,” he says.  “The percentage of people who say it is a bad time continue to point to interest rates as a factor.”

Mintert says rising interest rates heading into the 2024 growing season are a concern for producers, but it isn’t their biggest concern.  Higher input costs actually take the top spot.  

The Ag Economy Barometer is a monthly national survey of 400 U.S. agricultural producers.

AUDIO: Jim Mintert, Purdue University