Farmers Still Purchasing Land

An economist with Creighton University says farmers are still purchasing land despite the recent downturn in the ag economy.

Ernie Goss tells Brownfield, “There’s always the concern that these are coming from outside buyers. Well, not really. Our surveys indicate the farmers are buying it from the neighbors who retire and sell their property.”

Goss says many producers need the additional acres as they increase their output. He says elevated interest rates, higher input costs, and volatility from tariffs have put some downward pressure on ag land prices.

EDITOR’S TAKE:

For most farmers, land is their equity and the foundation for their future. The fact that farmland prices may be subsiding a bit will only add impetus to the desire of farmers/ranchers to acquire even more. This is especially true when a piece of property is adjacent to the homestead farm or ranch. Farmers also realize that land sales are often a once in a lifetime opportunity to acquire more production capability. For sure, many do rent a good portion of the land they farm, but in most instances, they prefer to own it whenever possible. There’s an old saying, “Farmers live poor, but die rich.” That simply means that the land they hold is worth a lot of money on their balance sheet! Farmers and ranchers are, for the most part, very credit-worthy because they own a lot of property that can be worth millions. But sometimes they need some way to even out cash flow. Well, by using CADFI, you can offer them a great solution. CADFI allows you to create payments that match their cash flow whether that means monthly, quarterly, bi-annually, or even annual payments. In addition, they can finance products from our AgPack® partners by bundling them with their truck purchase.