What is driving farmland values across the Southeast as the farm economy faces continued challenges?
In this RFD-TV Market Day Report interview, Daniel Boring, CRE®, MAI, ARA, ASA, Senior Vice President with Kidder Mathews Valuation Advisory Services, discusses how data center expansion, transitional land uses, infrastructure, timber market conditions, recreational demand, and changing water considerations are reshaping farmland and rural land values.
Daniel explains that farmland values in parts of the Southeast are becoming increasingly disconnected from the agricultural economy as land transitions to other uses. Data centers, industrial development, and residential development are creating new sources of demand, with some properties targeted for data center development reaching $250,000 to $1 million per acre depending on the infrastructure and resources available with the land.
Topics discussed in this video include
Farmland Values & Transitional Land Uses
Why the value of farmland may increasingly reflect its potential for uses beyond agriculture, including data center, industrial, and residential development.
Data Centers, Infrastructure & Land Value
How data center development is influencing rural land markets and why factors beyond the land itself, including access to power, water, permitting, and agreements with local municipalities, can significantly affect a property’s value to prospective buyers.
Southeast Timberland Trends
Daniel discusses softer pulp timber values alongside rising underlying land values, including the effects of hurricane-related timber supply and mill closures on the market.
Recreational & Development Demand
How demand from buyers seeking land for hunting, residential development, industrial development, and other uses is helping support rural and timberland values.
Water & Land Value
Water is becoming an increasingly important consideration for landowners and buyers in the Southeast. Daniel discusses how increased measurement and regulation of water access could affect the way water and the land associated with it are valued.
Key Takeaways
- Farmland values can be influenced by potential uses beyond agriculture.
- Access to power, water, permitting, and other infrastructure can be important factors in land targeted for data center development.
- Timber values and underlying land values may move in different directions.
- Recreational, residential, and industrial demand are influencing rural and timberland markets.
- Landowners should understand the full range of attributes associated with their property, not just the value of the land itself.
About Daniel Boring
Daniel Boring, CRE®, MAI, ARA, ASA is a Senior Vice President with Kidder Mathews Valuation Advisory Services and a senior member of the firm’s Land, Agribusiness & Natural Resources group. Daniel joined this Market Day Report interview through the American Society of Farm Managers and Rural Appraisers (ASFMRA), where he holds the ARA designation.
Learn more about Daniel Boring and Kidder Mathews Valuation Advisory Services.
Read RFD-TV’s original coverage.
About This Interview
This interview was originally conducted and aired by RFD-TV on Market Day Report and coordinated through the American Society of Farm Managers and Rural Appraisers (ASFMRA). Reposted by Kidder Mathews with permission.