March 28, 2022  

Prices for good cropland in the grain belt have taken another jump higher during the first quarter of 2022. The most recent and dramatic factor supporting ag land prices is of course the devastating Russian invasion of Ukraine which has shaken markets for ag commodities, fertilizer, and oil to mention just a few. The ensuing uncertainty in the world's food and ag supply drove commodity prices higher and increased the demand for farmland helping to move land prices upward. 

There were also underlying factors in play that were already strengthening land prices in the new year. Two months ago, we examined the factors that influenced land prices during 2019-2021 provided by Purdue University. Many of the factors are as strong or stronger at the start of 2022. 

Growing world demand for grains and meats; along with uncertain weather forecasts, brought good commodity price strength in the new year. This generated a positive view for net farm income in 2022 and the next several years despite the higher input costs. Inflation concerns came into the market more strongly for some land buyers as they were wanting a safe inflation hedging investment.  

Prices for good cropland moved higher at the start of 2022 with the firming of multiple influencing factors coupled with strong demand from farmer and investor buyers and a normal supply of farmland for sale. The Russian invasion of Ukraine thrust food and agriculture into the spotlight which has added to the world's need for good cropland elsewhere. The result of all these factors has been another jump in United States cropland prices during the first quarter of 2022.  

Randy Dickhut  

Senior Vice President - Real Estate Operations 

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