How Do Commodity Prices Affect Farmland Returns? (Video)
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There is another question here about the impact of low commodity prices and does that drive down financial returns and yields?
We touched on that a little bit earlier in the webinar, but as a whole we expect rents to be stable. We don't expect them to be up next year where commodity prices are here and there.
There may be a few places in the US, a few we call really hot markets, like some in Iowa particularly, where rent is already too high and you may see some corrections there.
But as a whole, we expect stability and inversely if commodity prices do improve, we expect rents to improve because we've been flatish for years now in the data.
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