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Goss: Land prices decline, sales also slow

An ag economist says farmland sales have slowed despite some softening in prices.

Creighton University’s Ernie Goss says ag land values sank below growth neutral for the 13^th time in the last 14 months in the latest Rural Mainstreet Index.

“Farmland prices were down, but not as much as farm income is down.”

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

Goss tells Brownfield the lack of land purchases can be contributed to higher interest rates.

“Not as many (sales) as you would expect. We talk about interest rates, but some sales are in cash.”

He says rate cuts from the Fed aren’t likely in the short-term.

“The Fed meets again at the end of this month and then again in September. Unless something strange happens between now and July 30^th, there won’t be a rate cut for the U.S. in that time period.”

Goss says the current state of interest rates has led to high operating loan costs for producers.