Land Value Trends
Have you noticed how many farms there are for sale right now? Demand is high and prices are continuing to increase. Friends from all over the Midwest are calling with stories of new record high sales for both higher quality and lower quality land. Values are debatable, but one trend is keeping my attention. The spread between higher quality land, or class A soils, and lower quality land, or class B soils, is compressing. Is this due to the demand? Or are production techniques reducing the volatility of yields on class B land?