Agricultural outlook in U.S. improves with stable land prices, improved returns
That was one of the key messages delivered at Schrader Real Estate and Auction Company's annual State of the Farmer's Economy Update meetings recently in Florida and Indianapolis.
"After several years of lackluster profits, farmers ended the year with yields that exceeded many projections, and we even saw some firming of commodity prices that further helped boost farm income.
"It was still a challenging year for many, and we saw some increase in debt. But the climate appears to be more positive than many expected," said R.D. Schrader, president of the company.
Farmland prices and rents held relatively steady, despite some headwinds such as rising interest rates and an uptick in farm debt, he noted. "The recent tax cuts have encouraged many, and for the first time in many years, the inheritance tax has been removed as a concern for the overwhelming majority of farmers and landowners," said Schrader. The events were held in Venice, Florida, and Indianapolis.
Schrader noted a narrowing of the gap between higher-quality farmland and less productive land. "In many cases, farms with more woodland and water benefited from an improvement in demand for recreational land," said Schrader.
Steve Slonaker, a farm manager and appraiser for Schrader, advised landowners to give careful attention to succession planning and farm management. ■