Here it is again, another land price prediction thread.

What do you think land prices, agriculture and forested will do over the short term (1-3 years)

I think we may have hit the high here $5,500 an acre for mediocre tillable ground. With grain prices lower, inputs still high and interest rates high I think prices will be stable, possibly fall.

Same or drop some if your speaking of 100 acre or more.

land isnt going down anytime soon.

I know a guy from work who wants land in the western part of Wisconsin all high dollar!.

For larger parcels as stated 40 plus for mostly tillable land I would see a slow down turn, not as fast as one may expect with corn probably down 1-1.5 dollars per bushel and beans 2-3. What is more likely to happen as less will get put on the market and renting will be the modus of who crops and who does not the parcels. Rents are way more variable then selling price as there is no lender involved in most rentals.
Small lots and parcels will probably hold or continue to rise, but more slowly as the ramping up to buy has slowed. Interest rates at 6-8% are a lot different then 3-5% too, especially on the price structure we have now.
Also if the market gets traction that will take dollars away from other assets like land. We will continue to see more and more urban and suburban money coming into rural areas as the vast majority of rurual residents don't have the assets, equity and leverage to buy sizable parcels of land in todays world.

Bryce

Agreed. Big dairies in my area are swimming in subsidies money. 500 acres coming up for auction this next week, Ill know more then...

Timberland tracts 100 acres or more in my area, have more value as recreational land. Can be bought for $1000-$1500/ acre, timber or not, and once subdivided into 5-10 acre lots, upwards to $2000-$4000/ acre. I have a friend in the real estate business, says residential housing market down, recreational land his phone is ringing off the hook. Snowmobiler s and atv’ers driving the market.

The last 2-3 years there have not been hardly any subsidies going to most crops and or milk with the high prices that we have had and that is especially true for larger dairies that have limits if there are subsidies. The government payments the last 2-4 years have mostly been to subisidize crop insurance or to cover part of the cost for dairies to buy protection for higher feed costs based roughly on the milk feed price ratio.
It the larger dairies in MI today have lots of money it is because they have earned a lot of money the last two years and or the outside investors are investing in the dairies as a way to diversify their investments and also take advantage of depreciation etc. in owning depreciable property that can create tax write-offs.
As always it will be interesting to see how the new 5-year USDA Ag bill will be put together. The main senators in Ag come from the red states that have the most commodities and prices are dropping now and possibly the near term. Probably won't see much dropping of farm subsidies with that scenario.

Bryce

With morgage rates doubling or potentially tripling or worse, it should be slowing demand for a while.

I don't see land prices lowering much if at all. It seems to still be going up a little around me even with housing prices coming down. Recession are a funny thing they only hurt the poor and Middle class. The rich just get richer buying assets a discounted price and profiting on the rebound.

there is a boat load of cash out there today land wont drop never has

Farm ground where i trap sold 6100 dollars acre 4 weeks ago 1300 acres.

A $16 mil ranch in the Sandhills near Hyannis went on the market a month ago and is under contract. Not local ad not Ted Turner. Agent said you'll be surprised who bought it.

Still 11,000 a acre here for tillable ground.

I watch local land auctions closely. What's happening here is not price drops but instead it's no sales. I think bblwi nailed it, people won't sell they will just rent it out until stronger demand returns.

When it becomes public knowledge, it would be nice to know who bought it.

Maybe the prairie reserve are going to link up with Montana property and range their bison across the entire thing....

I'm guessing some Hollywood type bought it to play yellowstone.

Around here the land currently for sale is generally people that are wanting to cash in for a profit. If they sell fine if not fine so nothing really selling. I would say prices will just stay the same until inflation and the market catches up. Those that bought overpriced land in the last 1.5 years don't need to sell it. Those that wanted to cash in already sold. Around here farm ground two years ago was about $3000 per now asking is $5500. CRP/brush/trees is not that much less.

Last farm that sold near me was 7,000 an acre. I bet you could get 10.

Curious about who buys land at those prices? Is it corporations? I don't imagine there's many new farmers starting up at those prices let alone buying the equipment to farm it.