Looking at land as a long term investment

first_imgShare Facebook Twitter Google + LinkedIn Pinterest Land values in our area are continuing to hold steady, but how can we expect these to change going forward?“In the next 12 months land values are projected to show nominal levels of change with no major fluctuations,” said Dennis Badger, Vice President of Collateral Risk Management, Farm Credit Mid-America. “Specifically, our four-state region expected to show an average decrease of 0.9 percent from 2016 to 2017, though this predicted drop should still be considered part of the natural market correction following 2010 to 2012.”A gentle, downward trend since the last reporting period (July 2014 to June 2015) was expected as the land value hikes from 2010 through 2012 continue to force market corrections.While land typically represents one of the largest fixed expenses for a farming operation, it also represents one of the largest asset categories on a farmer’s balance sheet and serves as a long-term investment.“Long-term investments are intended to withstand market fluctuations like the region is currently experiencing,” said Badger. “Current land values may be dipping slightly instead of increasing due to economic conditions, which shouldn’t be viewed as abnormal.”Farmers should continue to monitor their bottom line carefully but know they can still move if an opportunity presents itself and if they are in a good financial position.AUDIO: The Ohio Ag Net’s Ty Higgins visits with Badger about buying land as a long term investment.Farm Credit Mid America Full Interview Dennis Badger 10.17.16For more financial tips, insights and perspectives from Farm Credit Mid-America visit e-farmcredit.com.last_img

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