Resurgence of land prices in America

The decline in arable land prices in the American Midwest has stopped. Prices show a minimal increase. For example, a price increase of 3% was achieved for the first time in 1 years. 

It is a striking fact, because the prices for arable land fell by 3% to 5% annually in the previous 7 years. A similar trend was visible during the agricultural crisis (80s).

High productivity 
The fact that prices are now rising again is mainly due to the high productivity of the soil in the Midwest. Prices for arable land in the area are expected to remain stable in the coming year.

Over time, however, the value of the land has increased. Since 2000, the value of real estate in the United States has doubled from nearly $3.000 per hectare (2000) to nearly $6.000 per hectare (2018).

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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