I have been reading some articles and hearing some reports that after years of huge increases in farm land values, they are softening.
I would say to that...maybe someday...but not yet.
It is way too early to tell if values are just taking a break and staying flat or decreasing.
In fact, with in the last 33 days, pasture land sold for the highest ever in Buffalo County, NE at $2,700/acre. $432,378 for 160.14 acres. This for non-tillable land folks.
Another parcel in the county sold for $12,100/acre for gravity irrigated crop ground.
When you see prices like these...well, I do not think prices are softening yet.
Now if corn stays below $5 a bushel for all of 2014, I think it may begin to go down...but not by much.
I look for a flat year which is okay. Prices have been rising too much the past 5 years.
Once thing is certain...they aren't making anymore land and only a handful of farms come on the market in any given year.
Those guys who have been driving by a farm for decades saying they want to own it will jump at the chance to buy when it is available...price of crop be darned!
As long as they are not over-extended...and right now most farmers are not...they will continue to pay top dollar for the ground that makes sense to add to their operation.
After all, it may be decades before it comes back on the market again...or longer!
Until Next Time...
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