Brad Neihouser | Commercial Broker

By all accounts, farmland values should be lower than they are today. There are plenty of reasons they could be: lower commodity prices, higher interest rates, and a downturn in the farm economy that has dragged on for several years now.  Any one of these on its own would be a fair excuse for the farmland market to soften. And yet, as we go about our daily work selling farmland for customers and clients, the market is holding remarkably strong. Why? Three reasons stand out: Farmland is still the asset of choice against inflation. When prices rise, land holds its value in a way few other investments can match. It's about as safe an investment as you can make. It's not going to walk off, and it's not going to burn down. They're not making any more of it. Land is a fixed supply, and demand isn't going anywhere. So while the numbers say farmland values should be lower, the truth is, they're not. The market is still active, and it...

If you are thinking about selling your farm or making a change in tenants, early fall is a really good time to give your tenant notice. This is especially true when you have a handshake lease or verbal lease—and there are plenty of those in farm country. That kind of relationship is a wonderful thing, but you might be surprised how quickly things can turn ugly when a tenant is not properly notified that they will not be farming the property the following year. If proper notice is not given by December 1, the tenant may be able to come back and say, “We are farming that farm next year for the same rate we farmed it this year.” Believe me, the law is on their side.   No one likes sending a registered letter, but it is good business and easy enough to do. It does not mean you have to replace your tenant. It simply keeps your options open.   If you decide to sell the farm, you do not have a tenant hanging around. If you want to explore the rental market, you are free...