Farmland Investment | Agriculture Banking
Farmland Investment and Purchaseing Farmland
We have farmland investment bidders and each one of our auctions, but will that buyer stop coming?
Interest rates both short term and long term continue to rise. We have witnessed the FED committee expressing optimistic outlooks from employment to inflation and have watched the longer term Treasury’s climb over the last six months. All of these factors are raising the costs of financing the purchase of farm ground. However, cash rent levels seem to be staying relatively firm when compared to last year. This could maintain the enticement levels for cash buyers looking to diversify their holdings as the ROI is still fair. Ag land could be an alternative to other cash holdings in an investment portfolio as it is still viewed as lower risk. The farmers are maintaining their balance sheet positions as most had quality yields to offset the lower prices. However, the gap is widening between those who struggle and those who are comfortable. If a farm land investment is in your future making sure you have a solid farmer partnership will be key.