CHAMPAIGN, Ill., Dec. 19, 2014 /PRNewswire/ -- When it comes
to farmland prices, the only certain thing about 2015 is that it
will be unlike any year we've seen in a while, according to
farmland authority Murray Wise,
president of Murray Wise Associates.
"This year has been one of transition, with prices varying
widely depending on land quality and location. The market has been
rewarding the more productive land, but buyers have been less
enthusiastic about lower quality land in poorer areas. As to the
overall direction, I think we'll start to get more clarity in the
coming months, especially in the Corn Belt," said Wise.
Low commodity prices have put downward pressure on the market in
the Midwest, but Wise said that's only one of many factors expected
to influence next year's land prices.
"Commodity prices vary a lot year to year, and farmland buyers
generally are thinking in terms of a time frame that's 10 years or
longer. So today's low corn prices are just one of many factors --
and a short term one at that," said Wise. Other considerations
include interest rates and the availability of alternative
investments. Even international developments play a role, including
output of other countries and the Chinese government's policies for
allowing the import of genetically modified crops.
One notable exception to the cloudy and mixed outlook is
Florida, where Murray Wise
Associates has sold almost 12,000 acres during the past 24
months.
"All the elements are in place for Florida farmland to continue to do well,
because the demand is really strong relative to the amount of land
being offered. We're seeing strength in all types of Florida farmland -- groves, row crops, pasture
and woodland," said Wise. He said Murray Wise Associates will
continue to be active in the state.
Recreational land is also showing a comeback, with prices
improving and Murray Wise Associates auctions drawing strong crowds in the
Midwest and Southeast during 2014. "We're seeing prices at
pre-recession levels, and we've had very active bidding at every
sale," said Wise.
Murray Wise Associates LLC, with offices in Florida, Illinois and Iowa, is a leading national agricultural real
estate marketing and financial advisory firm. Individuals seeking
additional information may visit murraywiseassociates.com or call
800-607-6888.
Murray Wise Associates
For more information:
Carl Carter, 205-823-3273
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SOURCE Murray Wise Associates