Mike Pearson takes a look at how interest rates are beginning to impact farmland prices in the USA.

Cropland prices began increasing in 2020 due to a combination of COVID era funding and high grain prices due to a derecho.

This has resulted in three years of highs in all areas of farmland. The prices eclipsed the highs in 2013 and 2014.

Farmland prices are slowing now in the first half in 2023. This has meant a reduction in the amount farmland sold and pressure on the prices due to the interest rate impacting the price of capital.

Rangeland prices are starting to move higher also due to recent rainfall and high cattle prices. The main factor behind rangeland prices though depends on local rainfall in the area.

However, farmers remain the biggest group of buyers at the record prices-- farmers making 80 percent of the buyers. Investors are still interested but are not willing to pay record prices.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, a farm broadcaster and host of This Week in Agribusiness.