Farmers will be the first to tell you that when the price of commodities go up, so does everything else. If it isn?t the seed, fertilizer, or chemicals, then it?s the land. If you?re selling land, this will be good news. If you are looking at expanding your operation to take advantage of the commodity prices, you may not be as excited to hear that land values are at their highest in about eight years.
Randy Dickhut is the Senior Vice President of Real Estate Options for the Farmers National Company. He says that higher commodity prices and rounds of government aid payments have given farmers more optimism and cash flow. Which means they can invest in land. While this increase isn?t completely unexpected, the degree of increase was surprising.
This isn?t just a localized anomaly. These increases are occurring all around rural America.
Dickhut says there are a few variables that will determine how long this market remains high.
