Selective Buyers Vie for High Quality Farmland:  

Average Values Up 20 Percent 

An accelerated farmland sell-off at the end of 2012 has led to continued low supplies of premium quality property, according to Farmers National Company, the largest farmland and ranchland real estate company in the country. Last year's rush, prompted by economic uncertainty and tax law changes, continues to have an impact into 2013. High quality land is still in demand, and buyers are competing for top acres that are currently in short supply.  

Competition for land has kept values strong, averaging 20 percent higher values over comparable land in 2012. Much of the continued rise is due to auction activity driving sales prices as purchasers vie for parcels of land. Mid- to high-quality properties are still seeing such rises in value, while lower quality land values are staying steady.  

 "Values are still going up, but the pace has slowed overall," said Derrick Volchoff, ALC, vice president of real estate operations at Farmers National Company. "Many transactions for high quality land are being sold via auction, which drives prices through competitive situations."  

Auctions today have turned very competitive with bidding wars becoming the norm for high quality land sales. Areas of the country that normally do not run auctions, such as the Delta region, are now seeing them on a regular basis, according to Volchoff. "Despite an overall moderation in the number of sales transactions since the end of last year, there has been noticeable growth in the size of parcels being sold per purchase," said Volchoff.  

Moving into the third quarter of 2013, Farmers National Company expects the number of transactions being closed to increase, based on activity seen in the past 60 days.  

"During the first two quarters of 2013, there has been a hiccup in activity based on the surge at 2012 year-end," said Volchoff. "However, the trend seems to be shifting upward again and transaction numbers for the balance of the year should remain relatively steady."  

Investors are sticking with land as a safe, long-term investment while farmers are putting cash from past yearly profits back into operations. Built up cash reserves for farmers are prompting farm operators to buy premium land when it becomes available to add to their inventory and to accommodate the return of younger family members to farms. For both groups, economic uncertainty is still driving purchase decisions. Farmers are looking for premium land on which to expand, while investors may purchase properties based on price and projected return on investments.  

"Even with recent drops in crop size for farmers, profits are still at a level higher than in 2010," said Volchoff. "Farm debt is still low in relative historical terms."  

According to Volchoff, several issues in the U.S., such as healthcare and interest rates are likely to impact economic trends and thus land inventory levels and sales activity once they are resolved. The direction of market and political issues will likely shape the rest of 2013. As the housing market improves, developers will likely begin to buy land for development. This could trigger more 1031 tax deferred exchanges pushing new money into the market. 

See reports of land values in your region and
read updates from our area sales managers.  

RECENT LAND AUCTION RESULTS 

$8,740/Acre • Lancaster County, Nebraska 

$13,000/Acre • Pocahontas County, Iowa 

$14,700/Acre • Hamilton County, Iowa 

$10,300/Acre • Shelby County, Iowa 

$6,500/Acre • Saunders County, Nebraska 

For more details on our upcoming auctions, please click here to see our auction calendar. 

For real estate information about your specific area, please contact: 

Roger Hayworth, Area Sales Manager for Ohio, Indiana, Illinois, Michigan, eastern Kentucky, and eastern Missouri at 1-888-673-4919 or RHayworth@FarmersNational.com; 

Sam Kain, ALC, GRI, ABRM, Area Sales Manager for Iowa, Minnesota, Missouri, North Dakota, South Dakota at 1-800-798-4509 or SKain@FarmersNational.com; 

Terry Longtin, AFM, Area Sales Manager for North Dakota and Northwest Minnesota at (701) 780-2828 or TLongtin@FarmersNational.com 

J D Maxson, Area Sales Manager for western Nebraska, portions of northwest Kansas, eastern Colorado, eastern Wyoming, and southwest South Dakota at (308) 660-2100 or JMaxson@FarmersNational.com;  

Keith Morris, ALC, GRI, Area Sales Manager for the Mid-South states at (901) 494-5263 or KMorris@FarmersNational.com. 

Monty Meusch, AFM. ALC. CAI. CES, Sales Manager for Kansas, Missouri, Oklahoma, and Texas at (817) 600-9485 or MMeusch@FarmersNational.com. 

Flo Sayre, ALC, Real Estate Broker for the Columbia Basin and Eastern Washington state at (509) 544-8944 or FSayre@FarmersNational.com 

Special Report: America's Top 30 Auction Houses 

Farmers National Company was Rated the #1 Land Auction Company in 2012 and 2011 by The Land Report -- The Magazine of the American Landowner 

The Land Report also rated Farmers National Company as a "Best Brokerage Company" in 2012 and 2013 

LAND AUCTION!  

690.68± Acres • Miner County, South Dakota 

Thursday, June 20, at 10:00 AM, at the Miner County 4-H Exhibit Building in Howard.  

This farm offers a unique opportunity to purchase a combination of high quality cropland, permanent native pasture/grass land, and CRP acres with contracts expiring in 2014, 2015 and 2016. The tracts also feature recreational hunting value. Tracts 2, 3 and 4 are adjoining but will sell as individual tracts. Tract 1 from Canova, South Dakota: go west three miles on 242 Street, then south on 432 Avenue one mile, then west on 243 Avenue one mile, to the northeast corner of the farm on the south side of the road.
Tracts 2, 3 or 4 from Canova, South Dakota: go west on 242 Avenue eight miles to SD Highway 25, then north on Highway 25 three miles to the southeast corner of Tract 3. Tracts 2 and 4 are adjoining. Jeff Obrecht, Auctioneer. 

For additional information, please contact Thomas Jass, at (605) 582-2798 or click here. 

LAND AUCTION!  

393.93± Acres • Dallas County, Iowa. 

Monday, June 24, at 10:00 AM at the Elks Lodge in Perry, Iowa. 

High CSR row crop farm located in central Iowa along a major highway. Farm is located one mile south and 3/4 mile east on Highway 141. Property is on north side of paved road from Bouton, Iowa.  

For additional information, please contact Rod Good, Agent, at (515) 981-0193 or click here. 

If you are considering selling, let this market work for you. This is not a time to sell real estate quietly to the neighbor or a relative unless you just want to leave money on the table. To get a handle on what your land might be worth, or if you are interested in buying land to add to your portfolio, give Derrick Volchoff a call at 1-800-346-2650. 

Would you like to Know About New Land Listings and Upcoming Auctions in Your Area? 

Farmers National Company would like to provide you with the most current information available by e-mail on new FNC land listings, real estate auctions and land trade news at no cost or obligation from you. Just click on the link below and provide us with your name, address, and e-mail. Please indicate what states you are interested in receiving information about in the "Comments" box. 

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