Ag Land Trends

As we've seen several times in the last 50 years, Ag property demand and residential demand are often opposite of each other.  We've seen the demand for residential properties decline over the past 2 years but the demand for ag property is very strong.

It seems that the low value of the dollar compared to other currencies makes our commodities look inexpensive to foreigners.  Ag exports are gaining substantially as U.S. commodity prices keep dropping in the world while actually going up in the U.S.

Fortunately farm income is rising substantially and as a consequence, demand for farm land is up.  Demand will probably remain up for some time as the consensus of the experts is that the value of the U.S. dollar will continue to drop for some time.

Our thoughts had been that after the IRC-1031 money disappeared the demand as well as as price of ag land would go down.  Not so!  Commodity prices may keep both demand and price elevated for a long time. 

EL