If farm income continues to slide, land prices and land rent will also have to come down, says Abbot Myers, chairman of Mississippi Land Bank.
“How much that will be, or when, we just don’t know," he said at the organization's annual meeting. "History shows that land prices tend to track farm income. Many of us remember the 1980s, when a sharp downturn in farm income brought a steep drop in land prices — U.S. farmland lost as much as 50 percent of its value.”
Even if land prices fall, he says, landlords may be reluctant to adjust cash rent downward, and farmers may be hesitant about asking for an adjustment for fear someone else will get the land.