We continue to hear buzz that farmland may be headed for a sharp drop in 2016 and following, with declines in the 35-50% range possible.
As stated by Dr. William Smith, Professor of Marketing in the Graziadio School of Business and Management at Pepperdine University in Malibu, Calif., and a licensed realtor at Rainbow Realty in Hot Springs National Park, Ark.:
As 2016 dawns, I am observing the sort of “denial” of falling prices by owners of farmland that was obvious in 2008-10 in owners of residential real estate. In the residential crash of 2008-10, homeowners were “comforted” by real estate agents who were willing to list their properties at pre-crash prices. As the properties sat on the market for months that often turned into years, the previously effervescent realtors were of cold comfort to increasingly desperate sellers.
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What do you think? Are farm prices rising, plateauing, or headed for a sharp drop in the near future? Let us know in the Comment section.