Farmland Market on Stable Ground

An appraiser who specializes in ag land suggests the market is on solid ground.

Jarad Royer with Compeer Financial says while the number of sales has slowed, values are steady. “Something is going to have to change to move (the market) either direction. I don’t really see bullish or bearish factors right now, I just kind of see going stable for a while.”

He suggests that the farmland market behaved similarly during the last big runup a decade ago. “We would increase, and then we’d stay stable for several years before something moves the market again.”

Royer is based in west-central Illinois and says the local market peaked in January with a sale around $25,000 an acre.

EDITOR’S TAKE:

One person’s opinion, maybe. We see similar reports from several different sources close to what is happening with ag land prices and market conditions. This is simply one additional sign that the financial condition of farmers/ranchers, especially their balance sheet, will be positive for the foreseeable future. This is important since it relates directly to their equity position and ability to obtain financing. You should continue to entice them with financing from CADFI and post-purchase protection warranties through CAD Protect. Both are excellent programs designed specifically for your farm/ranch customer.