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David Sparks Ph.d Land Value Factors
by David Sparks Ph.d, click here for bio

Program: Idaho Ag Today
Date: January 22, 2019

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Farmland sales and value expert Randy Dickhut, senior vice president of real estate operations at Farmers National Company talks about several factors that are influencing the value of farmland. There are regional differences showing up in today’s land market that will have a bearing on prices. Dairy producers in Wisconsin, New York and other states have been experiencing low milk prices for some time and those areas are now seeing an increase in retirement sales involving land and assets. Other regions did not experience the record crop yields in 2018 that other areas did, which adds to producers’ financial stress and results in additional land for sale entering the market. 

 

Factors outside agriculture are hanging over the land market and may have a further effect on values. Landowners, lenders and producers are watching interest rates and wondering how high they might go. Higher rates not only affect borrowing costs, but also influence capitalization rates for land investors. Those in agriculture are concerned about the current trade issues and if there will be lingering effects. On the positive side, investors, both small and large, continue to be interested in owning agricultural land for the long-term, Dickhut noted. 

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