Farmers across the country are reportedly less likely to sell their land then they were even a few years ago, representing what could be a major shift in agricultural trends.
For the past few decades, farm production has become increasingly concentrated in the hands of a few farmers. With more and more farmers retiring and not being replaced by a younger generation, significant amounts of farmland have been sold to developers. The rising land values have proven remarkably tempting to many farmers no longer interested in agricultural production.
In response, many states have passed farmland protection laws, enabling state agriculture departments to offer farmers and ranchers significant amounts of money in exchange for locking their land into agricultural easements preventing urban and suburban development on valuable farmland.
In some states and communities, however, farmers appear less willing to sell their land to developers. In Lancaster County, Pennsylvania, for example, retiring farmers have passed up amazingly profitable land deals (with some farmers turning down $15,000 an acre).
Some of the reasons prompting their commitment to agriculture is the major profits that can be made growing commodities, the high profits available to farmers renting or leasing their land to new farmers, and emotional attachments to farmland.
While this commitment may just be a temporary anomaly (one that might disappear with a potential drop in commodity prices), it at least represents a temporary reversal in distressing agricultural trends.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmloans.com.
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Written by: Justin Ellison / Farm Plus Staff Writer