How Russia’s invasion could drive up land values even more
Land values have increased steadily over the last year and an ag economist says Russia’s invasion into Ukraine could drive up land prices even more.
Nathan Kauffman with the Kansas City Federal Reserve says it will hinge on crop production in those two countries. “Ukraine and Russia are both large areas where crop land is used for production and (if) the issues we’re seeing now translate into more significant long-term questions about production.”
And, he tells Brownfield, demand could shift to the U.S. making the land that crops are grown on more valuable. “If it does, and if we don’t see the level of production in Ukraine and Russia that we’ve seen in recent years then that production will need to come from somewhere,” he says. “You could have more pressure on markets either locally here or other parts of the world where agriculture is concentrated.”
He says it could take several months to see any impacts to land values.