Pat Karst, Vice President and Chris Peacock, Senior Accounts Manager attended the 2015 National Land Conference in Tucson, Arizona March 23-25. The conference highlighted three nationally acclaimed economists weighing in on the current and future economic conditions of the Agriculture Industry.
A summary of the economic sessions includes:
- Agriculture is very sound financially.
- Farmland has been a very profitable investment for decades and will continue that trend long-term.
- We appear to be in a slight pullback in land values that is not anticipated to last more than a couple of years unless we have a major shift that impacts profitability.
- Interest rates are likely to increase slightly over the next 12 to 18 months, but remain historically low.
- The number of farms for sale has been at approximately 50% of the historical range and is projected to remain at these levels for the foreseeable future (lack of a desirable alternative investment).
- Top farmland is holding strong while marginal farms are selling from more in line of where they should in relation to productivity.
- Farmers remain the primary purchaser of farmland.
- There is significant farmland investment funding on the sidelines waiting for a slightly more attractive return.
For more details on the session please contact:
Huntington, IN Winchester, IN