Farmers Expect Farmland Values Will Continue to Rise
According to the most recent Ag Economy Barometer from Purdue University, farmers expect the rise in farmland values to continue unabated over the next year as the Short-Run Farmland Value Expectations Index rose to a record high reading of 159, 11 points higher than a month earlier.
This reading stands in sharp contrast to a year ago when the short-run index bottomed out at a reading of 72. Producers were less optimistic, however, when queried about their longer-run (5-year) outlook for farmland values as the Long-Term Farmland Values Expectations Index declined 9 points in April to a reading of 148. The difference in producers’ short vs. long-term expectations could be an indication they are concerned that the rapid rise in farmland values currently underway might not be sustainable over the long run.
