Harvest outcomes a wild card for future land values
Harvest outcomes and crop prices will likely determine the direction of land values this fall.
Randy Dickhut, Senior Vice President of Farmers National Company tells Brownfield the land market has remained relatively stable through COVID-19.
“Keeping land values steady would be low interest rates and the outlook that those may be that way for a while. There has been some government support and there may be some more, especially as it is an election year, that helps the cash flow of producers.”
But he says this year’s crop remains a wild card coupled with the challenging ag economy.
“It just depends on where this crop season goes in the near term and where the prices respond, but there is a challenge for grain prices to really get a lot stronger so it is absolutely going to be another challenging year one way or another.”
He says the one thing that remains constant is people’s trust in farmland as a good long-term investment.