As we look ahead to the new growing season, one thing that will certainly be on the minds of producers and farm families is the acquisition of more land for either expansion of the family operation, or for beginning farmers looking to make a start. Of course, we know that it is tough bidding against developers or large corporations looking to expand certain types of ag production, but is is out of reach? Is there an end to the rocket ship we have been riding?
Luke Worrell of Worrell Services chairs the Farmland Values Conference Project, and he talks about what we are looking at as 2024 heads into April. If you were expecting high-interest rates and commodity prices to weaken the land values, you may be in for a surprise.
Worrell says we continue to see unprecedented growth in land values.
Worrell says that the number of land transactions declined in 2023, compared with 2021 and 2022, but that can be attributed to the rise in prices.
Worrell says that while overall value is still rising, we may have peaked on the value of cash rent.
Of those surveyed, 64% of respondents expect land values to decrease this year, 32% expect things to hold steady, and only 8% expect to see an increase in land values.
