Farmland values have likely peaked, but a sharp decline is not expected, according to Bell Bank Director of Agribusiness Development Lynn Paulson. Speaking at the Bell Bank AgViews Live seminar, Paulson said additional farmland could come onto the market in the years ahead through estate transfers and changing farm economics. “I think land values have peaked, but I don’t think there’s going to be a crash,” said Paulson. “You’ll always have exceptional sales when two buyers really want the same property, but overall we’re likely to see more land become available.” Paulson said demographics will play a major role. “A huge intergenerational transfer of farmland is coming. Many of those heirs won’t be farmers, so some of that land will be sold. At the same time, lower grain prices could cause some producers to sell land to improve liquidity.”
