NEWS

2025 was the year of change - in many respects. At the forefront of concern were inflation, tariffs and the impacts those would have on our supply chains and demand. Escalating rhetoric and tit for tat duties struck fear and uncertainty into the markets and our daily lives. We are still sorting through the effects of those and what the new world trade order looks like. Consumer spending habits have surely changed and confidence is at all time lows. The good news is that inflation looks to be moderating and any price stability will help consumers get back to a more liberal budget. 

Second was interest rates. The FED began easing in September of 2024 and continued with three 25 basis point cuts in 2025. This is bringing liquidity back to the market and relieving pressure on land owners with large outstanding loans. It will take another year, possibly two, for farmers to fully recover from the last four years of higher operating costs and lower product value. There are commodities that faired much better through these times with lower inventories, stable demand and higher pricing, but most went through a downturn prior to, or during, the pandemic and post pandemic era. 

2026 appears to be the year of recovery. The FED chairman will change and it is assumed that the current administration will replace him with a proponent of easing and continued rate cuts. 2026 will probably see three 25 basis point cuts as the base case...very similar or better than 2025. That, paired with better commodity pricing for almonds, walnuts, sweet potatoes, and continued strength in peaches and tomatoes, will bolster net profits and nuetralize any further losses that most farms were seeing. 

All that said, 2026 is set to be a better year for real estate. Growers will be able to welcome the thought of adding to their operations again and sellers will be happy to see more activity in the market - and an increase in their land's value.