by Ben Nuelle
Farmland values continue to decline.
Since the historic run up in land values in the past decade, Randy Dickhut with Farmers National Company says values have been declining in the last three years.
“[This is] based on the economics that underlie farm values. The commodity prices and farm incomes.”
Dickhut says Iowa land values are holding steady but good quality land is declining.
“It’s only down 15 to 20 percent maybe in that decline. Lower quality land has declined some more than that just because it is not quite as productive but the land market is in a good equilibrium. There is not as much on the market for sale like a lot of times but the demand is less too from farmers and investors.”
He says many factors could contribute to pushing values even lower.
“If we continue to see these lower grain and cattle prices producing lower net farm incomes to the land owner and farmer we will continue to see a gradual. Unless anything else major happens, I think it just going to be a stable and slow decline.”