|You are here: Blog » Agricultural Real Estate » What's on the Mind of Landowers?|
In visiting with landowners this summer, it is interesting to listen to what is currently on their minds. Some of their thoughts are similar to what farmers are thinking about right now and other things are different. For instance, farmers are closely watching yield prospects for this challenging year but are also starting to plan for the 2023 crop season and are looking at fertilizer prices, seed availability, budget projections for next year with higher input costs and unknown grain prices,
One top of the mind item for both landowners and farmers over the coming months is what will cash rents be for 2023. From the landowner's perspective, they are seeing much better grain prices, hearing about good farm incomes from 2021 and mostly so in 2022. Also, they are aware of the historically high land prices which along with rising inflation increase their income expectations and needs. Farmers on the other hand are looking ahead to 2023 with concern due to the higher cost of inputs than they had in 2022, rising interest costs, and unknown profitability from the 2022 crop depending on final yields this year.
Landowners are also thinking about other aspects of their farms. Many have questions about cover crops, conservation work to prevent erosion, and how they can take care of the farm for the next generation. Most are very interested in the new technologies involved in today's agriculture because of the changes in how farmers track data and improve yields.
A small percentage are interested in current land values as they are considering the sale of their farm. Most just like to know what land value trends are doing so that they can plan for the generational transfer of the land or use values to help set rent expectations. Most importantly right now many landowners are deciding rents for 2023.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|