Farmland Market Expected to Stay Strong in 2023

The farmland market is expected to remain strong going into 2023. Compeer Financial Senior Real Estate Appraiser Bill Mergen says he anticipates high bids at farm auctions this fall and winter despite rising interest rates.

“I just talked to a banker and the 30-year fixed rate is about 7 1/2 percent, whereas you could’ve gotten that same 30-year rate at the beginning of the year at 3 1/2 percent. But it doesn’t seem to slow down the land market at this time,” says Mergen.

Iowa State University Extension Economist Chad Hart says higher rates should temper land values eventually. “Interest rates will slow down the land market, but I think that’s the key word here. I think it slows it down but doesn’t necessarily reverse what we’re seeing here because there are other factors that have been pushing the land market higher as well. Two of those are robust farm revenue and outside investors using farmland as a hedge against inflation.”

Editor’s Take:

Simply one more reason that farmers and ranchers should be on the top of your customer prospect list. Bankers and USDA’s Chief Economist are already predicting continued high net farm income for 2023 and the land price strength adds to the farmer/rancher balance sheet. So, how do you reach these financially strong customers? AgTruckTrader.com is one great way. And the great news – you can use this amazing, highly targeted and effective tool for FREE until the end of 2022! We certainly can assist you with other tools as well, but why not give AgTT a try, what have you got to lose?