Farms showing less in value
According to Jacksonville real estate investors reported that the real estate value in farms is a bubble that is bursting. Citing that the recovery in residential housing is improving the comparison to farmland shows a decline. Not all is bad news as the farmers still have good equity in their lands but that it’s not as robust as they would like. Farming in the US is tricky because of competition on all levels as well as relations, natural disasters and gathered data from multiple sources such as the regional Federal Reserve banks. In this scenario the bounty of the harvest brought prices down.
Not too long ago drought had ravaged the farmlands on several seasons. Wind, rain, insects all contribute to possible losses. Speculators believe the farmland bubble already burst and will continue to decline into 2014. From then on it’s anybody’s guess as to what will happen next.
If the residential trend keeps up it may cause a vacuum that sucks up the farmland as well. Jacksonville real estate investors don’t always buy farmland to farm but because in many cases the land is beautiful and can be developed into any number of real estate ventures such as vacation spots and getaways.
It’s a given this farmland issue is going to be scrutinized to the last kernel of corn because of the ramifications should the market drop further. None of the states can afford to have large tracts of farmland go unattended.
They won’t be raising capital and left unattended could be a hazard especially in dry areas where fires could erupt. The keeping and nurturing of farmland in the Jacksonville-FL is not only a business venture but a safety measure as well. If people don’t buy existing farms or create new farmland then the market will not only drop but stagnate.
That will be tough on everyone because resources in the Florida are strung out already. Livestock is the other big issue. No one wants to slaughter thousands of animals needlessly like what happened a few months ago when a sudden freeze took place and thousands of cattle had to be liquidated. That puts the insurance companies on the edge of their wits as it was totally unexpected and cost a lot of money to recover.
Overall, Jacksonville farmers are going to have to strategize to improve their lot.