Economists say farmland value remains stable
Farmland value remains relatively stable, according to Purdue Ag Economist Jim Mintert.
“I think the real driver, the biggest driver out there, is low interest rates and the commitment to keep interest rates low for the next several years,” he says.
Purdue’s Michael Langemeier says there are several positive factors impacting farmland values.
“Land is a very thin market and a very small percentage of land gets turned over in a given year,” he says. “Land is a very good hedge against inflation. In fact, some research we’ve done recently suggest it’s an even better hedge against inflation than gold—that’s saying something.”
Mintert and Langemeier made these comments during a recent Purdue Center for Commercial Agriculture webinar.