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Another study shows low commodity prices are devaluing farmland

Another study is validating the impact low commodity prices are having on farmland values across the Midwest.

In Minnesota, data from the University’s Department of Applied Economics shows the average price of farm real estate fell from nearly $4,800 an acre to $4,600 in 2015.

Minnesota Extension economist Bill Lazarus says farmland values in the state had experienced a substantial run-up prior to 2013 primarily because of high commodity prices.

“We started to see a leveling off after 2012; a slight downturn (after).  Nothing hugely significant at this point.”

Lazarus tells Brownfield the five percent drop last year comes on the heels of record farmland prices, and points out that in Minnesota current values are double what they were 10 years ago.