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FNC Notes Equilibrium In Farmland Market

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When looking at one of the most critical commodities in the world, the production of food is on the top of the list. To facilitate the production of food, the land that it is harvested from is the driving factor in profitable returns and value assessment. The economic factors that need to be considered is the current equilibrium of the market for the land as well as a calculated decision on the opportunity costs associated with holding onto the land as opposed to selling or renting the property. The article “FNC Notes Equilibrium in Farmland Market” the balance of the agricultural property market is described across the country as in equilibrium.
In the article by Mike Walsten, he describes the current market for agricultural land and explains that in the current standing relationship between the supply for and the demand for this land. The article depicts the current market values of land used for agricultural farming in the United States, the basis of …show more content…

Walsten explains that the Farmers National Company (FNC) has reported "With the supply of land for sale being on the low side, the land market is stable at this time. But, factors affecting land values can surface over the next few years to move the land market in either direction (2016)”. As of the writing of the article, it was shown that Iowa and Nebraska are currently in the midst of a plateau in relationship to values of the properties. Right now most owners of farm land are not in the market to sell their properties, however, this makes the value of the property decline as investors are beginning to move to other states in the search for more usable farm

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