News

Rate cuts expected to drive pastureland demand in 2026

A real estate appraiser says lower interest rates could spark more demand for pastureland in 2026.

Bonnie Downing with Agri Affiliates says the majority of her clients had to use a significant amount of cash on hand in 2025. “They didn’t want to borrow that kind of money. They take that into their cost of production. The interest is a large player in trying to make ends meet.

She tells Brownfield the combination of rate cuts from the Federal Reserve and high cattle prices have producers well positioned this year. “Ranchers as they expand will likely finance some of it or all of it depending on how their cash flow is.”

Downing says while the drop in interest rates might improve liquidity, producers should also consider the extra doubt load they’d be adding.

Bonnie Downing: