April 22nd, 2016

Low commodity prices have done a pretty good job of depressing buying activity on farmland right now.  I have heard several comments like “I want to buy a farm, but I think I’ll wait a while; land is going to get cheaper”.  If you’re one of those folks, maybe you better think a little harder.  It might get cheaper, but it might not.  As a matter of fact, we’re already seeing a bit of a bull market in soybeans this spring due to problems with lower than expected acreage plantings, a dry spring, and flooding problems in Argentina, of all things. AND WE DON’T HAVE ANY SOYBEANS IN THE GROUND YET!

All it will take now is a hot, dry summer here in the US, and we’ll be looking at profitable crop production expectations again.  And once that expectation gets back in our minds, guess what’s going to happen to land values? They’ll be headed right back up, that’s what!

Leave a Reply