Farmland prices rise, spurred by strong commodity prices and healthy farm income
VENICE, Fla., Feb. 25, 2022 /PRNewswire/ — Farmland prices are rising sharply as a result of high yields and strong commodity prices, as well as other factors, according to R.D. Schrader, president of Schrader Real Estate and Auction Company.
That was his message to landowners who packed a meeting room in Venice, Florida, for the company’s annual State of the Farmer’s Economy Update.
“A lot of things are falling into place to create one of the most positive land markets in recent years,” said Schrader. “The high yields and strong commodity prices are a powerful combination we haven’t seen in several years. In addition, many investors see the U.S. farmland market as a safe haven.”
Prices on high quality farmland have risen by up to 24 percent in some parts of the Midwest, Schrader said. “We had auctions in 13 states in 2021, and competition was the strongest we’ve seen in seven or eight years,” he added.
Steve Slonaker, a farm manager, appraiser and auction manager, pointed to factors creating challenges for those appraising farmland currently. “We’re seeing factors we’ve never seen before, including the use of Midwest farmland for wind and solar leases, pipelines, carbon wells and others. Since we have little or no history on which to base our assessments, this makes the picture more complicated for everyone buying, selling or leasing farmland,” he said.
He pointed to increased input costs, including recent innovations such as sugar on soybean plants and sulfur on corn and soybeans. However, strong commodity prices point to profitable farm operations despite the higher costs, he said.
The company will host additional Farmer’s Economy Updates in Lafayette, Indiana on Monday, March 7, and in Fort Wayne, Indiana, on Friday, March 11. Those interested in attending may call 800-451-2709 for a reservation.
Schrader Real Estate and Auction Company, based in Columbia City, Indiana, is a leading auctioneer of agricultural land and equipment throughout the United States. The company is a five-time USA Today/National Auctioneers Association Auction of the Year winner.
For more information:
Carl Carter, 205-910-1952
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SOURCE Schrader Real Estate and Auction Company
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