There is a renewed sense of optimism across the country as farmers begin pulling their planting equipment out of the sheds and prepare for spring planting. Commodity prices have been range bound for the past several months; however, farmers are the eternal optimists, and as the planters begin to roll later this month, they will be looking for opportunities to market their remaining 2023 grain and forward price some of their expected 2024 production.

The ag economy has faced strong headwinds this past year, with increased interest rates and decreased commodity prices; however, overall demand for farmland remains extraordinarily strong and land values are holding steady in most areas. Even in this slight downward turn in the ag sector, we continue to receive phone calls and emails from farmers and investors looking to expand their land holdings. High quality land continues to sell at a level comparable to spring of 2023; however, lower quality farms and farms with a few blemishes on them have seen a 7-15 percent reduction in price. I predict land values will continue to hold steady for the first half of 2024, even after we move into spring and early summer when the sales volume begins to shrink.

Commodity prices, interest rates, input costs, and actual production will continue to drive the real estate market in 2024, and we are optimistic that these factors are moving in the landowner’s favor. While commodity prices are always difficult to predict, we have seen a reduction in input costs, and we are anticipating a slight reduction in interest rates in 2024. While there are always areas in the Corn Belt that need moisture, many of the drought-stricken areas across the Midwest received some beneficial rains last fall and have caught some nice rains this spring. The 2024 crop has not yet been planted, but several areas in the Midwest are already in a much better position than they were in the spring of 2023.

If you are interested in learning more about your farm or ranch’s value, please reach out to one of our experienced farm managers or real estate associates who can answer your questions.