Time: 1:45 PM
Speakers: Mark Williams and Dave Mielnicki, Peoples Company
Land values 2023 and beyond – Mark Williams and Dave Mielnicki, Peoples Company
The presentation will look at current land values and what are the factors driving land market throughout Michigan/Midwest in 2023 and beyond. Farming has always faced uncertainty, due to weather, market conditions, and interest rates. Strong commodity prices pushed the average to good-producing cropland prices up 5-10% over the past year with good-producing cropland rising closer to the 10% value. Proximity buying in small local markets has also pushed land values higher, especially with a low supply of land on the market. Fair-producing cropland and most cropland in the northern half of the Lower Peninsula has stayed relatively stable to slight increases. Looking into 2023, are transactions and values going to decline? Factors to consider among small to mid-sized farmers are higher interest rates, unsteady markets, and rising capital costs to borrow money. Will cash buyers, especially institutional investors, drive value in markets with high-producing cropland as they are looking for a safer investment and hedge against inflation?