Kentucky agriculture land price increases continue to slow
Kentucky farmland price increases continue to slow Hoptown Chronicle
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The Rising Price of Farmland in Kentucky Slows Down
Introduction
A recent study conducted by Farmers National Bank, which operates 12 branches in Kentucky, reveals that the rising price of farmland in the state has been slowing down. This trend has been observed since the second half of last year and has continued into the first six months of this year.
Background
Paul Schadegg, a senior vice president for Farmers National Bank, explains that the record prices for agricultural land in 2020 and 2021 began to level off in the latter part of last year. This trend has persisted throughout the first half of this year.
Impact on Farmers
Schadegg highlights that the price of agricultural land typically follows the price of commodities. Over the past five years, many farm operators had extra funds to bid for farms due to favorable commodity prices. However, despite facing higher interest rates and production costs, 70% of agricultural land sales are still made to operators of other farms.
When bidding for farmland, farmers may find themselves competing against investors who do not have an emotional attachment to the land. Investors will bid up to a certain level, but if it no longer meets their return on investment, they will withdraw from the market.
Sustainable Development Goals (SDGs)
The Sustainable Development Goals (SDGs) are a set of global goals established by the United Nations to address various social, economic, and environmental challenges. The trends observed in Kentucky’s farmland prices align with several SDGs:
- SDG 1: No Poverty – The slowdown in farmland price increases may help reduce poverty among farmers by making land more affordable.
- SDG 2: Zero Hunger – Stable farmland prices can contribute to food security by ensuring that farmers can continue their operations without significant financial burdens.
- SDG 8: Decent Work and Economic Growth – The study’s findings indicate a more sustainable and balanced growth in the agricultural sector, which can lead to better job opportunities and economic development.
- SDG 11: Sustainable Cities and Communities – The stability in farmland prices can help preserve agricultural land and prevent its conversion into urban areas, promoting sustainable communities.
Conclusion
The study conducted by Farmers National Bank reveals that the rising price of farmland in Kentucky has been slowing down since the second half of last year. This trend has continued into the first half of this year. Despite facing challenges such as higher interest rates and production costs, farmers still account for a significant portion of agricultural land sales. The steady increase in farmland value over time serves as an asset for farm producers. These developments align with several Sustainable Development Goals, including poverty reduction, food security, economic growth, and sustainable communities.
This article was republished with permission from WEKU.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty – The rising price of farmland may have implications for poverty reduction and income inequality.
- SDG 2: Zero Hunger – The article discusses the price of agricultural land, which is directly related to food production and access to food.
- SDG 8: Decent Work and Economic Growth – The article mentions the impact of higher interest rates and production costs on farmers, which relates to economic growth and decent work.
- SDG 10: Reduced Inequalities – The article mentions that farm operators are bidding against investors for farmland, which may contribute to inequalities in land ownership.
- SDG 11: Sustainable Cities and Communities – While not directly mentioned in the article, the availability and affordability of farmland can impact urban development and sustainable communities.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property.
- Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular, women, indigenous peoples, family farmers, pastoralists, and fishers.
- Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
- Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure.
- Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size.
- Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.
- Indicator 10.2.1: Proportion of people living below 50 percent of median income, by age, sex, and persons with disabilities.
SDGs, Targets and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property. | Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure. |
| SDG 2: Zero Hunger | Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular, women, indigenous peoples, family farmers, pastoralists, and fishers. | Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size. |
| SDG 8: Decent Work and Economic Growth | Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. | Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities. |
| SDG 10: Reduced Inequalities | Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status. | Indicator 10.2.1: Proportion of people living below 50 percent of median income, by age, sex, and persons with disabilities. |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: hoptownchronicle.org
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