Producers are optimistic about future farmland values

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Producers are optimistic about future farmland values

Producers expect farmland values to improve over the next five years, according to the latest Purdue University/CME Group Ag Economy Barometer.  

Jim Mintert is the director of the Purdue Center for Commercial Agriculture.

“To bring some context to that, if you go back to the post-World War II era, there’s only been a couple of times when farmland values declined over a five-year time frame,” he says. “In other words, there is a long-term tendency for farmland values to rise over long periods of time.”

He tells Brownfield farmer sentiment dipped during the beginning months of the coronavirus pandemic but rebounded in June.

“Fifty-five percent of respondents said they expect farmland values to rise over the next five years,” he says. “Probably the most positive thing on the entire survey was people coming back and saying that long-term trend was coming back into play.”

The survey of 400 agricultural producers across the U.S. was conducted June 22-26.  

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