Farmers National Reports 2017 Ag Land Outlook and State by State Survey Results

According to Farmers National Company, the past three years of declining farm profits have pushed land values lower. At the start of 2017, there are several factors that will affect ag land values.

"This winter, questions abound as to the direction of commodity prices, interest rates, inflation, challenges in the world economy, weather and U.S. tax law," said Randy Dickhut, senior vice president of real estate operations for Farmers National Company in a press release. "Buyers of ag land are asking if it is an opportune time to make a purchase of a farm or ranch, while sellers are asking if the market dynamics are indicating that it is good time to sell land.”

The company manages more than 5,000 farms and ranches in 28 states, which total more than 2 million acres. In the last five years, Farmers National Company has sold more than 3,800 farms and more than $2.44 billion of real estate.

Dickhut cites the following factors as driving values:

· Location

· Quality of land

· Interest rates

· Grain and livestock prices

"Our agents report seeing regions and local areas where land prices are stable to somewhat strengthening post-2016 harvest. Then there are other areas where land values have continued to decline," he said. "Foreign trade policy and its effect on agriculture will be closely watched over the next few months. Potential changes in tax laws could affect estate taxation and capital gains rules that in turn influence buying and selling decisions.”