For two years the farmland market stayed fairly steady. Each quarter brought slight changes up or down, but overall the market was flat.
Commodity prices crashed beginning right after Memorial Day. $10/bushel soybeans are now $7/bushel and corn that was over $4/bushel is closer to $3/bushel. The combination of excellent yields here in the US and trade wars damaging exports are the primary factors in the decline.
Halderman Real Estate is active in the farmland marketplace on a weekly basis. Over the past month our sales are softer due to fewer bidders and a more conservative approach to bidding. Premier farms, such as the Blue Mound Farm, will bring premier prices, but average to below average farms are suffering. Supply of farms for sale is increasing which may burden the market more, especially in certain areas where more acres sold recently.
What does it all mean? Sales this fall will be more challenging and we will likely see the second half of 2018 showing a 5% decline in land values. Of course if the trade wars settle, a new farm bill is authorized and the commodity markets respond favorably then land values will flatten. Too many unknowns exist right now and there is some slight indication of more supply coming to the market. If you need or want to sell this “off-season” then we suggest being early in the process.
Please contact your Halderman Area Representative or our main office at 800-424-2324 to talk about your specific needs, your property and your options.