AgAmerica’s Curt Covington: Why Farmland Values May Drop

Curt Covington of AgAmerica Lending says financial pressure is building across U.S. agriculture, with farmland values in parts of the West already declining 10–20%. He points to cash flow challenges, higher interest rates, and tighter credit as key factors affecting producers, with some farmers running out of liquidity. He discusses how regional differences are significant, with West Coast specialty crops facing ongoing strain while Midwest farmers contend with lower commodity prices. Despite these pressures, some sectors like cattle and high-quality farmland continue to show stronger demand.