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Nebraska farmland values showing stability, despite sales slowdown

An ag finance expert says Nebraska farmland values remain stable despite a slowdown in sales.

Tim Koch, executive vice president of business development with Farm Credit Services of America, tells Brownfield he expects that to continue in the short term.

“None of us know where commodity prices are going. If we go back probably 30 or 60 days ago, the outlook for corn wasn’t very favorable, and we’ve seen a fairly decent rally in the corn market, which just adds to that overall sentiment of producers that things are pretty good.”

He says interest rates are not expected to have a significant impact on the farm real estate market.

“The general sentiment is we won’t see significant decreases in interest rates. As we’ve seen the first couple weeks in January, longer term interest rates have actually increased, which once again, all else being equal, that should limit any upside movement in real estate values,” he says.

Koch says he expects tighter profit margins could eventually lead to some declines in farmland values.

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