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Inflationary impacts to farmland values could shift

An ag economist says the way inflation has impacted farmland values could shift in 2023.

Matt Erickson with Farm Credit Services of America tells Brownfield when the fed raised interest rates to curb inflation, it boosted investments in farmland.

“Buyers want to go to a safe investment and when you look at the stock market, it has been extremely volatile on the global scale and domestically. So, buyers are going to farmland -what has been basically a hedge towards inflation.”

He says 2022 has been all about reacting to what the fed is going to do.

“I think as we get into the retail season, for markets in general, it is going to be implementation of what the fed has been doing and how markets react to that. I think it is going to be a different pivot here as we enter 2023.”

He says interest in farmland this year has mostly come from local, repeat buyers.