The price of American farmland may be heading for its first significant drop since the mid-1980s. MetLife Agricultural Finance says that, based on certain measurements, market conditions are the worst they have been since the Farm Crisis. Land prices likely will fall 20 percent from the top end that was established early last year. MetLife, one of America’s largest ag mortgage lenders, said the slump will end sometime in 2018, blaming the pending downfall on low farm profits. MetLife expects corn and soybean prices to hit bottom next year, but the lower trend likely hangs on through most of 2017 because of record crop production this year. MetLife added lower cash incomes will lead to a reduction in inflation-adjusted farmland prices in 2018, the first significant correction since the ’80s.
Recent data shows farmland prices in Iowa, Illinois, and Indiana dropping three percent from July-September of this year.
Source: NAFB News Service