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Land Value Drop No Cause for Panic

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Land Value Drop No Cause for Panic

Indiana farmland prices have continued to decline. That, however, is not a cause for concern according to Dennis Badger with Farm Credit Mid-America. “While farmland typical represents one of the largest expenses for a farming operation it also represents one of the biggest asset values on their balance sheet,” he stated. “While land values may be dipping because of the current economic climate, it should not be viewed as anything extraordinary.”

Badger says purchasing more land is something a producer should still consider, if the investment looks to have long term value and your financial situation is right, “Provided the land itself fits into their overall operation and their balance sheet and financial situation would support such a move, then by all means I would think that is a wise decision.”

As for the future, Badger sees a rather quiet land market going into 2017. He predicts that the 4 state region served by Farm Credit Mid-America is expected to show a 0.9% decline in land values from 2016 to 2017, “This decline should still be seen as part of a normal market correction.”

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Farm Credit Mid-America has a variety of resources and financial tips. Visit e-farmcredit.com.

 



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