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Farmland prices, farm equipment sales continue weak trends, according to Rural Mainstreet Index

An ag economist says farmland prices and ag equipment sales continue to be weak, according to the latest Rural Mainstreet Index.

Creighton University economist Ernie Goss says farmland prices, which sank for the fourth time in five months, are expected to dip by 5.3% over the next 12 months.   

“Farmland prices while they are down and they are going to continue to move somewhat lower, they’re still fairly strong,” he says. “That just reflects the long term outlook of agriculture, which I think is positive, but we live in the short term.”

He says some bankers are predicting a 10 to 20% decline in farmland prices over the next year.

Goss says lower interest rates should help spark some positivity in the farm equipment sector.

“I expect those to move lower. For the next year and a half, we’re going to move probably a percent and a half lower and that’s good for farm equipment purchases and good for those dealers, and good for the manufacturers as well,” he says.

According to the index, farm equipment sales sank for the 14^th consecutive month.

The index is a monthly survey of ag bankers in 10 states including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota. The index ranges from 0 and 100, with a reading of 50.0 that represents growth neutral.