New research from Ohio State University reveals a notable transformation taking place in agricultural real estate markets nationwide. The study shows that farmland purchase prices are climbing at a faster rate than the rental income those properties generate.
Carl Zulauf, a professor emeritus at the university, explains that this represents a major market shift. “After about 25-year period of fairly stable agricultural cropland, it began to suddenly increase,” Zulauf stated. “We may be hitting a peak now, but…”
The findings suggest that investors and farmers are paying premium prices for agricultural property even as the income potential from leasing that same land hasn’t kept pace with the rising values.
