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LAND VALUES<br />
“At end of day,<br />
land is still a<br />
great investment.<br />
There are always<br />
people wanting<br />
to buy it.”<br />
— ALAN McNEIL<br />
McNeil agreed, noting that while the market<br />
is not as hot as it was the previous 18 months,<br />
he expects land will retain a strong value despite<br />
the slowed growth.<br />
“Things are pulling back,” he noted. “What’s<br />
holding the market up the most is the low<br />
amount of inventory. There are always going to<br />
be those little pockets, high-quality ground, that<br />
will bring really good money and set records<br />
for area. A quality farm always brings good<br />
money.”<br />
The marketing technique for what McNeil<br />
characterized as the “B” and “C” quality<br />
ground also has changed.<br />
“People look at it differently than a year and<br />
a half ago. They list it rather than auction it.<br />
Buyers have tightened up because of interest<br />
rates.”<br />
While commodities “are doing ok, and people<br />
are still making money,” the rise in interest<br />
rates have had an impact, he said.<br />
“Lower interest rates are attractive to younger<br />
guys who were going to borrow,” he noted.<br />
“At end of day, land is still a great investment,”<br />
he said. “There are always people<br />
wanting to buy it.”<br />
Rabail Chandio<br />
Iowa State University<br />
Schwager said there<br />
are still buyers looking<br />
to invest if the right<br />
parcel becomes available,<br />
although the pool<br />
of buyers decreased<br />
as higher interest rates<br />
crept up.<br />
“There are still<br />
some investors and<br />
some younger farmers<br />
purchasing farmland as<br />
well, but higher interest<br />
rates have had an effect<br />
through the second half<br />
of 2023,” he noted. “We aren’t seeing buyers<br />
as aggressive as they were a year ago with the<br />
lower commodity prices and the higher interest<br />
rates. We may see more land on the market as a<br />
result of the higher interest rates.”<br />
Retired farmers and investors may sell land<br />
and take advantage of the higher rate of return<br />
by investing in the money market, he explained.<br />
“We are already seeing more farmland available<br />
on the market compared to a year ago.<br />
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