Pulse Results

Pulse: Farmland Values Expected to Remain Flat in Light of Decline in Commodity Prices


The March LANDTHINK Pulse revealed 41.82% of respondents think that farmland values in 2014 will remain flat, after a significant drop in commodity prices in 2013.

As reflected by the results of last month’s informal online survey, most think that in light of slumping commodity prices, farmland values will remain flat or only slightly decrease. For the last 5 years or so, farmland prices have soared across the Heartland, selling at record per-acre prices. Many people in the industry, however, are concerned about a downturn in farmland values, given the sharp decline in commodities, especially corn and grain.

Last month, the March Pulse asked: Given the significant drop in commodity prices in 2013, what effect will it have on farmland values in 2014?

The LANDTHINK audience seemed to be agreement. The general consensus (41.82%) thought farmland values would “remain flat”, followed closely by 33.64%, who thought there would be a small decrease in values.

The last couple of years, high commodity prices coupled with low interest rates, fueled the booming farmland market and attracted scores of investors. The continual decline in commodity prices means lower income for farmers, which consequently leads to lower land values, fewer farmland transactions and lower rental rates.

Here’s how the results panned out:

March 2014 LANDTHINK Pulse Results

  • 4.55% said there would be a Large Increase in values
  • 15.00% said there would be a Small Increase in values
  • 41.82% said values would Remain Flat
  • 33.64% said there would be a Small Decrease in values
  • 5.00% said there would be a Large Decrease in values

Congratulations to Joe Blackburn, winner of the $50 Amazon gift card after answering the March Pulse question! Joe is a Sales Associate at Tutt Land Company, with a focus on southeast Alabama.

LANDTHINK is seeking sponsors for the May LANDTHINK Pulse and months thereafter. Sponsorship of the Pulse is an excellent opportunity for land industry businesses and professionals to receive significant exposure by leveraging our entire network of web and social media sites. Pulse sponsorships are offered on a first come first serve basis and are subject to certain limitations. If your business would be interested in sponsoring next month’s May Pulse question, please contact us soon.

Do you have a suggestion for next month’s Pulse question? Submit your question here and we might choose yours!

Should states have the right to sue each other over water rights? Tell us what you think! Click here to answer the April Pulse question. All respondents will be automatically entered to win a $50 Amazon gift card!

This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of LANDTHINK. Use of this content without permission is a violation of federal copyright law. The articles, posts, comments, opinions and information provided by LANDTHINK are for informational and research purposes only and DOES NOT substitute or coincide with the advice of an attorney, accountant, real estate broker or any other licensed real estate professional. LANDTHINK strongly advises visitors and readers to seek their own professional guidance and advice related to buying, investing in or selling real estate.

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LANDTHINK is part of the LANDFLIP network of sites and brings together the various components of the land industry and provides knowledge and information to land investors, owners and professionals to create a stronger land marketplace. Get land smart!

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