2017 – A Year of Turbulence But “The Good Times Are Coming” – Week 12

Rising Interest Rates – Rural Land

The crop land market and timber land markets are impacted by other forces to a greater effect than mortgage rates. However, mortgage rates do have an impact on land, be it crop land or timber land.

In my 44-year career, I have seen rural land continue to sell even when interest rates were in the double digits. Again, there are forces more important than interest rates in rural land. Rural land is also an excellent inflation hedge. Unless there is a severe economic dislocation we expect the rural land market to continue to be strong.