USDA Chief Economist Seth Meyer says farmland values continue to rise year-over-year, but questions land value strength amid changing economic conditions on the farm.
Or as Meyer says, an increase of $200 an acre, rising to $4 on average for crop and pastureland… $5,570 an acre just for cropland.
While that is strong for this marketing year, ’24/’25 looks less promising as commodity prices decline, and margins get even tighter.
Because land is a key source of collateral, land value increases or decreases can affect access to credit. Which is even more important in a time of shrinking margins.
The American Bankers Association warned recently that refinancing debt in a time of shrinking margins could make farm borrowing even more risky.
