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Who’s buying farmland?

A member of the Executive Council of the American Society of Farm Managers and Rural Appraisers says most farmland values remain relatively strong despite continued uncertainty around the ag economy.

Luke Worrell, who co-owns Worrell Land Services in Jacksonville, Illinois, says farmers are remaining active in the land market.

“The vast majority of the buyers are still local owner-operators or local ag investors.”  He says, “And it’s always been the case, as long as I’ve been doing this.”

He tells Brownfield that farmland continues to be a solid investment.

“Farmland has always been viewed as like a hedge against inflation.”  He says, “It’s always been good when we’re in an era of uncertainty. I think you could come up with more reasons to say there’d be a little strength in the market.”

Worrell says that strength can also limit outside investment.

“Spreadsheet buyers, they’re looking at what that return is at the bottom of their spreadsheet and our values are so strong in a lot of cases that there’s some barriers to entry,” he says.

Worrell expects farmland of all types to hold or even gain value over the next year.  

AUDIO: Luke Worrell – Worrell Land Services