Terrain Senior Grain and Oilseed Analyst Matt Erickson remains bullish on farmland for the long term, “but in the short term, commodity prices that are depressed here a bit, you’ve got rising interest rates, I think you’re going to see a little adjustment on land prices.” Erickson does not anticipate a major drawback in land values, but buyers will be more selective. What about cash rents? “When we think about the macro environment, like the ten-year treasuries that investors look at, if I’m a landlord and I have a 4.1 or 4.2 percent ten-year treasury, and my current return for my farm ground for cash rent is 2.7-2.8 percent, I may be less reluctant to reduce my cash rent price.” Listen to the full RRFN interview.
