News

Farmland market softening continues

Pictured: David Widmar with Agricultural Economic Insights at the 2024 NAFB Convention in Kansas City (Photo by Brent Barnett/Brownfield)

An ag economist says a few factors have caused the farmland market to show signs of softening.

David Widmar is with Agricultural Economic Insights and says, “Declining farm profitability because of low commodity prices, but also we have a rising interest rate environment. You want to think about the value of an asset that generates cash flows, like farmland, you need to know the interest rate environment and the income. Those two income factors are a headwind.”

Speaking to Brownfield at the 2024 NAFB Convention in Kansas City, he said there’s been a slowdown in farmland sales. “That’s taking some of the pressure off the market. The other thing to keep in mind is that there’s a lot of variation geographically.”

An ag land specialist with Farmers National Company, Matt Gunderson, recently told Brownfield he expects land sales to strengthen in 2025.

NAFB TRADE TALK INTERVIEW: David Widmar, Agricultural Economic Insights