The farmland market across the Midwest is resilient. While the markets have been pushing lower for almost a year and reaching below breakeven levels, Doug Hensley, President of Hertz Farm Management, says we’ve not seen land prices retreat in a similar fashion. While land sales aren’t making new highs, sale after sale in the early summer months is a reminder of how valuable the opportunity is to own the farm next door. Farmland is highly sought after. “I know landowners who’ve waited decades to position themselves to make a move when a specific farm comes available,” he says. “For some, the timing doesn’t matter.” He also says it does somewhat mute the effect of grain market volatility as not all of last year’s production is getting sold at current price levels. Plus, if the opportunity to buy the right farm surfaces, he says many land buyers can easily sacrifice other capital expenditures.
What’s keeping farmland prices high?
