Where Did Farmland Values Soar?

Farmland Values and Cash Rents. Ag Trends. Agricultural Economic Insights

by David Widmar

Farmland values and cash rents have been a hot topic. For nearly a decade, the industry watched with excitement as farmland ratcheted higher. With farmland markets showing signs of softening, we thought it would be valuable to reflect on the Boom Era and take a geographic look at how farmland values and cash rents changed.

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Farmland Values and Cash Rents: Declining Profits Point to Further Reductions

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by Brent Gloy

As we discussed in these May posts (1, 2) most indications are that prices for U.S. row crop farmland are now softening, bringing an end to a tremendous run of increases for farmland values. We thought it would be useful to take a look at how far farmland values have come and some different measures of farmland valuation in order to gain  insights into where prices might be headed. Continue reading

Input Prices, Corn Prices, and Farmland Values

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By Brent Gloy

The value of farmland is dependent upon expectations of the future revenue and the costs associated with the land. Expected earnings are difficult to accurately predict. For example, the income generated by farmers started rising well before farmland values shot up. As market participants began to realize that farm incomes might remain at elevated levels for some time, land values increased rapidly. Now, farm incomes are falling and one is left to wonder what the implications of these lower incomes are for farmland values. The answer will likely depend upon how market participants expect revenues and costs to adjust going forward.  Continue reading