Farmland Values Declining

Farmland values, particularly in the Midwest are continuing to decline as is farm real estate values according to the USDA.

Analyst Dan Bigelow said that could be a good thing for cash rents and bring up profits for those are renting their farmland.

“Over 30 percent of farmland is owned and rented out by non-producers or non-operator landlords so when cash rental rates decline there it doesn’t necessarily have a big negative one-to-one impact in terms of a ripple throughout the farm economy.”

Bigelow did note that while these are just more indicators of a major slump in the ag economy, it’s not as bad as it has been.

“These declines observed over recent years really pale in comparison to what was experienced during the farm crisis of the 1980s.”

Farm real estate values are expected to decline three-tenths of one percent in 2017.