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Farmland prices decline in June, RMI says

An ag economist says farmland prices have been decreasing.

Ernie Goss with Creighton University says the latest Rural Mainstreet Index shows prices have now declined in back-to-back months. “I think we’ve seen a peak in terms of growth. Our number was only slightly below growth neutral, so it’s holding up better than the overall farm economy, but still now moving sideways after 53 straight months of very strong growth.”

The index is a monthly survey of ag bankers in 10 states including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota.

Goss tells Brownfield the trend is likely to continue. “Iowa, for example, you’re seeing some weaker growth there and that’s likely to continue for the rest of 2024 and into 2025.”

He says higher interest rates has been one of the contributing factors.