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Farmland values show signs of softening

An ag real estate professional says farmland values will likely continue to soften in 2019.

Randy Dickhut with Farmers National Company says farmland values have been fairly steady with downward pressure because of the down farm economy.

“Lower farm incomes and  lower commodity prices have put some stress on farmers and so the land values have reacted to that,” he says.

But, he tells Brownfield that could change if more farmland was for sale.

“There’s not as much land on the market for sale so it’s a supply demand market with not as much for sale and when good farms come up for sale there is demand to buy those,” he says. “The prices would stay fairly steady and sometimes surprise us how strong they might be.”

Dickhut says good quality land can also bring an above average price.

He says 2019 will be a pivotal year for the ag industry as economic and trade issues get resolved.

Dickhut spoke to Brownfield at the NAFB Convention in Kansas City.

Audio: Randy Dickhut, Farmers National Company