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Farmland values remain strong despite financial headwinds

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Midwestern farmland values remain strong despite a weakening ag economy.

Compeer Financial director of appraisal Adam Schmidt says a dramatic increase in interest rates should put downward pressure on the land market.

“Land is more expensive to finance, that investor category has other attractive alternative investments to earn a higher return. So it starts asking the question ‘why haven’t we really seen a decrease in land values?”

He tells Brownfield the answer mostly has to do with several years of strong farmer profitability resulting in excess working capital.

Farmland values remain strong despite financial headwinds