An auctioneer at Columbia City-based Schrader Real Estate and Auction Company says farmland prices “remain resilient" despite downward pressures." R.D. Schrader cites mixed cropland prices on tillable land in 2018, stating that downward pressures include lower incomes, higher interest rates and the prospect of tariffs on farm goods.
"Given current and short term projected farm incomes, I would expect farmland values to continue to drift slightly lower. Of course, new variables, such as a good trade agreement with China, could be positive. The biggest factor will be supply and demand. Financially induced sales could also put more land on the market," he said at the company’s annual "Farmer’s Economy Update" briefings in Venice, Florida and Fort Wayne..
Other experts said the tax reform passed in 2018 could mean big benefits for farmers, if utilized correctly.
"There are numerous opportunities for farmers and landowners, including a 20% deduction on ‘qualified business income’ from a partnership, S Corporation or sole proprietorship. But the changes are extensive and sometimes complicated. Landowners need sound advice from accountants who have studied the changes carefully," said Kevin Mills, a CPA and principal of K-COE ISOM, an accounting and consulting firm that specializes in food and agriculture.