Many factors could weaken farmland values ​​in 2023

News

Many factors could weaken farmland values ​​in 2023

Several factors could weaken the farmland market in 2023.

Paul Schadegg, senior vice president at Farmers National Company, says values ​​remain strong ahead of the new year.

“But that said, we are very cautious about the peripherals of interest rates, inflation, world events and commodity markets if there is a shift.”

Speaking to Brownfield during the National Agricultural Broadcasting Association’s National Convention in Kansas City last week, he says rising interest rates have yet to have a major impact.

“Cash is definitely king out there right now. When most land transactions are cash transactions, if they leverage the land, it’s a very small amount.”

But with interest rates rising by more than seven percent, Schadegg says there will be a tipping point down the road.