Farmland Market Remains Active, Despite Lower Commodity Prices

Jan 05, 2015

Schrader Real Estate and Auction Company continued to see large crowds of active bidders during 2014, according to company President R.D. Schrader.

While noting that "prices have fallen off a bit" in some areas due to lower commodity prices, he said the company found active markets in 2014 well beyond the Midwest. In a week-long series of major auctions in six states, the company sold 13,450 acres for a total of $46.3 million. "We had good participation and successful auctions in the Delta, Southwest and Mountain regions, as well as the Midwest," he said.

"For the year, we averaged more than two farmland auctions a week, successfully selling farms of every conceivable size and quality," he said. "Buyers are more selective, and if interest rates rise in combination with lower commodity prices, that will impact demand. But the market is still there. The agriculture industry remains very strong. It's important in this environment to make sure you're marketing the property effectively, which is always a priority for us."

Schrader said he remains optimistic. "Long term, farmland remains very attractive, especially when you consider the alternatives. We've seen wild one-day swings in stocks, and interest rates continue at all-time lows. Meanwhile, over the last decade, Midwestern farmland has been appreciating at an average rate of more than 10 percent per year," he said.

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Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.