After a significant climb in farmland values, the top of the mountain may be in sight. According to a recent Regional Land Value Report, land values will likely remain strong in 2023, with the surge dwindling in 2024. As interest rates and inflation bolster the cost of inputs, pressure will also rise on farmland values.

Jackson Takach, a chief economist at Farmer Mac, says land value appreciation may slow and reverse when the commodity markets slow. He says negative changes in the economy usually drive land depreciation. The farmland market has headlined the news as acres sell for record amounts all across the country and foreign investors add U.S. acres to their portfolios.

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