Local Farmland Market

The last 24 months has been a massive roller coaster when it comes to the farmland market. 

The initial month of COVID sent the market down because of the uncertainty.  But this downward turn was very short lived and started a good recovery until October 2021.  This was when the market went absolutely nuts!  From October 2021 to present day, we saw land price increases anywhere between 20-50% in only a few months time.  BUT, and this is a big BUT, headwinds are starting to show in the market.  Yes, rapidly increasing interest rates and very high inflation are definitely starting to show their effects on the entire economy, especially the land market. 

As of the date of this article, the good cropland market was still strong but we are starting to see significant softness and/or weak spots in the rougher cropland and hunting ground.  One of the drivers in the increase in the land market has been the lack of farms available on the market (listings or auctions).  This supply of farms on the market has seemed to have become more normal over the past few months with several local listings and/or auctions.  Where is the market going?  There are a lot of headwinds in the market right now, so one would say we might see somewhat of a decrease.  The one thing I will promise you is that the roller coaster over the past 24 months is not over with…..so hang on!     

Article was written by Mike Sharpe.  He is a real estate agent for Trophy Properties and Auction.  Mike is a Certified General Real Estate Appraiser from Mexico.  He owns and operates Sharpe Ag Services, Inc. in Mexico.  Mike can be reached at 573-373-5000 or email at msharpe@trophypa.com