Gradual Land Value Declines Expected This Year

Farmers National Company predicts a softer agricultural land market will continue in 2016, with values for high-quality land holding steadier while lower quality land values decline. Still, despite lower land values scattered across many regions, land values, in general, will remain historically high when compared to long-term trends, according to the nation’s leading farm and ranch real estate company. A company official says lower grain and livestock prices are an important factor in the current measured decline in land values, adding that they expect to see the trend continue as net farm income continues to fall.

Farmers National Company statistics indicate positive long-term economic trends, even with the current softening of ag land values. The current land value trend may encourage new buyers to enter the market or existing investors to expand portfolios.

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