Jason Henderson and Brent Gloy, Guest Editors
Recent farmland price increases have caused many to question whether the current situation will result in a repeat of the 1970s farmland value boom and 1980s bust. The articles in this Choices theme examine the drivers shaping current farmland value trends and the risks to future values.
Robust farm incomes have spurred farmland values to their strongest levels since the 1970s. Despite strong farmer and investor demand, most land owners, especially aging farmers are reluctant to sell farmland. Generally, current land economic fundamentals are strong and highly volatile market conditions will influence farmland values and farm ownership trends.
Pasture land values have increased significantly in the past decade, particularly in the central United States Plains States. Pasture rental rates have increased slightly over this same time period. While agricultural influences remain important in explaining the higher values, recreational uses, hobby farms and conversion for urban and residential uses are increasingly important pasture land price determinants.