The Federal Reserve’s multiple rate hikes have appeared to reduce inflation significantly over the past nine months. They’ve also helped put the brakes on record farm land sales that were common since 2021. Paul Schadegg is Farmers National Company’s Senior Vice President for Real Estate Operations.
Schadegg says demand remains strong for prime farmland but has cooled in areas impacted by drought. He also attributes a recent cooling of the commodity markets to the slowdown. That has resulted in a higher percentage of buyers seeking farmland as an investment.
Paul Schadegg of Farmers National Company notes that rural bankers are seeing an uptick in loans sought to purchase farmland, as declining farm cash reserves are causing farmers to endure higher interest rates if they want to add to their acreage.