Despite weak commodity prices, farmland remains a popular investment. According to Farmers National Company Senior Vice President Matt Gunderson, farmland values are determined by its location. “It really depends upon the piece of ground, the productivity of that ground; what has come up or not come up for sale in that particular area and the third component of it is if there are two determined bidders.” For the most part, cash rents are holding steady. Cash rents are most common, but there is increasing interest in bonus flex-provision rents. “If it’s a great year for yield or price for that operator, they’re sharing a little bit with that land owner, but we can keep that contained to that crop year and can have a discussion for next year depending on the economics.” Listen to the interview.
