This article, written by Mike Walsten
who has covered ag business trends for many years, discusses how operating results at farms and ranches across the nation this year could have a big impact on land prices for years to come.
I found this article interesting, particularly because we continue to hear of buyers looking for large blocks of pasture land and crop land in Georgia and Alabama. It is not uncommon at all for me to hear an agent say something to the effect of, “I need to find 2,500 acres of pasture land for a buyer who wants to put in a cattle operation.”
Finding that type of property on the market in our two operating states, Alabama and Georgia, is surprisingly difficult at this time. In fact, we have been involved in and continue to see several projects of converting timberland back to crop and pasture land, which can be very expensive.
At the time of this writing, I see commodity prices continue to decline, as they have for the last month or so. It will be interesting to see if Mike’s suggestions hold true. If so, falling commodity prices between now and November 2015 will translate into a decline in prices of agricultural land across the nation.