News
Farmer sentiment on farmland values
Farmers are more optimistic about the short-term outlook of farmland values, according to the latest Purdue University/CME Group Ag Economy Barometer.
Purdue’s Jim Mintert says farmer sentiment is up considerably compared to this time last year.
“Compared to a year ago that reading was all the way down to 72, so people are just way more optimistic now about the next twelve months in farmland values,” he says. “That’s really reflective, I think, of what’s been taking place this winter and early spring with this limited number of sales that have taken place, they’ve all taken place at very strong prices based on the reports we’ve been picking up from auctioneers.”
The Short-Run Farmland Value Expectations Index rose to a record high reading of 159.
He tells Brownfield farmers are less optimistic about the long-term outlook.
“Our understanding or thinking about that is maybe farmers are a little skeptical about the rapid rise that has taken place this year being sustainable in the longer term,” he says. “That doesn’t mean they’re negative about farmland values, but they could indicate they’re concerned it’s not sustainable.”
The Long-Term Farmland Values Expectations Index declined nine points to 148.
