Managing for Profit

The continued strength of farmland values

With low commodity and milk prices, some think land values should come down as well. Sam Miller is Managing Director of Agriculture Banking at BMO Harris Bank, he says while farmland values are discussed on a regional or even national basis; it is really a local market.  Values have decreased a bit in cropping areas but livestock, especially dairy areas have remained high as the sector has been better-off financially and there is a need for manure application. Adding to the value is the fact farmland has been a good investment over the years attracting more non-traditional buyers including Real Estate Investment Trusts.