For 2020, expect more of the same. Farmland values and cash rent levels should remain flat, according to the LandOwner/Pro Farmer cash rent and land values survey, which polls U.S. landowners and farmers.
The 2019 survey found a modest amount of optimism, as well as a decline in pessimism about the year ahead compared to prior years, says Mike Walsten, consultant and columnist for LandOwner.
“The survey found 55% of respondents expect land values will remain unchanged in 2020,” he says. “That’s up from last year’s 48% and 162% higher than the response reported in 2014. In addition, only 34% expect land values will decline in 2020, down from 48% in 2018.”
Just under half of respondents said they will be in the market to buy farmland in 2020, while only 6% will be in the market to sell farmland.
Cash rents are expected to remain stable in 2020. The majority of respondents, 66%, expect cash rents in their area to be unchanged next year. That’s up from 54% in 2018.