We only include farms that are 90% cropland. While the year to date trend is down slightly, the average for the year is $51.11/WAPI bu. while the average for April is $50.90/WAPI bu. This means that if your farm has a WAPI of 155.2 bushels of corn/acre based on its soil types the value might be $7,900/acre (155.2 bu. multiplied by $50.90/WAPI bu.).
The farms we sold in April were generally average. The online auctions in April generated dollars per bushel at 99.58% of the live events held prior to the COVID 19 outbreak. The farmland market remained steady throughout the challenging economic environment!
The future, as of the end of April, remains very cloudy. Commodity prices are low, below cost of production, and the general economy is shutdown. These two factors will push farmland values downward. On a positive note, interest rates are low, government support programs will help offset low commodity prices and there are very few farms for sale. The low supply is normal for planting season and likely, the market remains thin for a couple of months waiting for more direction.
Farmland owners know they have a solid investment. The steady market through April shows the resiliency of farmland and that people like to invest in what they can see, touch and feel. Also, farmland tends to be an inflation hedge. If the government stimulus leads to inflation, historically owning farmland is wise.