As the fall land auction season winds down, the answer might be nothing!
Although the really good land appears to be selling as well as it has in the past – $14,000 to even $15,000 + per acre. The same cannot be said for the simple good land. There have been sales of $11,000 per acre to as low as $8500 with apparently very similar productivity. For land that is a notch down from that sales are even harder to execute.
There is still a lot of cash available to purchase land, and even with the probability of higher interest rates, farmland buyers appear to at least somewhat more cautious. Of course the question is whether they are being cautious enough! Certainly farm income is down and it may very well take something extraneous to get it to improve to whatever a new normal might be.
The real questions might be –
What will be the new normal for farm income?
When will we get there?