Blog > 1980's Land Crisis vs Today's Challenges
The 1980s farm crisis was one of the most challenging periods in agricultural history, marked by plummeting land values, soaring interest rates, and widespread farm foreclosures. Farmers who had borrowed heavily during the boom years of the 1970s suddenly found themselves unable to make payments as interest rates skyrocketed above 15-18%, commodity prices fell, and credit became nearly impossible to secure. Many family farms were lost, and land values dropped as much as 50% in some areas.
Fast forward to today, and while the agricultural economy faces challenges, the situation looks vastly different. Interest rates have risen in recent years, but they remain far below 1980s levels. Land values are at record highs, driven by strong farmer and investor demand, historically low land availability, and consistent returns from cash rent and commodity production.
One key difference? Demand for farmland is stronger than ever. While the 1980s saw a decline in buyers and a flood of distressed land hitting the market, today’s environment is characterized by limited supply and increasing interest from investors, farmers, and institutional buyers.
However, with shifting market conditions, some landowners are reassessing their holdings. Rising interest rates, changing cash rent returns, and appreciation in land values have led some investors and multi-generational farm owners to consider whether now is the right time to sell and reinvest.
If you’re weighing your options in today’s market, I’d be happy to discuss current trends, buyer demand, and potential exit strategies.
All conversations are confidential and no-pressure.
Dennis Prussman, Realtor & Auctioneer
Land Specialist, Realtor, Auctioneer, Husband (38-years), Dad, Bee Keeper, Veteran (34-years).
Dennis is a Sellers Agent who specializes in marketing Missouri farms to a local, regional, and nationwide audience with a goal of maximizing the farm’s sale price. He offers both traditional listing and auction services and is an award-winning marketing specialist at the national level. He has a reputation for exceeding sale price and customer service expectations.