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View the Trade Shows Farmers National Company will be attending this year. 

  

Location and Quality Driving Current Land Values 

Supply and Demand Supporting the Land Market 

As 2014 came to a close, land values had stabilized from the double digit increases of the past few years, according to Farmers National Company, the nation's leading farm and ranch real estate company. Location and quality of land continue to be main drivers of prices for a given tract of land. The lower supply of land for sale and the continued demand for agricultural land is maintaining general stability of the land market.  

  

"While lower grade land has seen drops in value near 15 percent from recent highs, top quality crop and grazing land still bring solid prices as owner operators and investors seek to expand their operations with the most productive land," said Randy Dickhut, AFM, Vice President of Real Estate Operations of Farmers National Company.  

  

According to Farmers National Company, the supply of land for sale is less than in the past few years as there is no tax policy change driving sales and landowners remain tight holders of the asset. "Land is viewed as a long term asset and owners consider agricultural land a stable investment in a changing world," said Dickhut. 

Demand for cropland and grazing land from owner operators remains good, but buyers are being more realistic in what they will pay given lower grain prices. Sellers are having to be realistic in evaluating the quality of their land and the expected selling price in order to have a successful sale. 

Despite leveling or moderately decreasing land values overall, Farmers National Company has seen strong prices paid for specific properties within the last 60 days based on local competition and the desire for quality. According to Dickhut, farmland seldom comes up for sale in many locations, therefore local producers are willing to pay top dollar to grow their operation and asset base.  

Recent value adjustments in the land market still leave land values at historically high levels in the longer term view. Price softening is happening, but at different rates depending on the region, prices for major commodities in that region, and quality of the land. Profitability from record crop incomes supported by insurance coverage, has kept farm operations in the black and producers interested in adding land.  

"Buyers are being more realistic when considering land purchases which has reduced the fervor of rapidly escalating prices seen at land auctions in recent years," said Dickhut. "Owner operators continue to be the main purchasers of agricultural land comprising nearly 90% of buyers in many areas."  

  

Investors are showing up in the market to purchase land, but are also being realistic in the timing of their purchases and the long term outlook for agricultural land. 

Profitability in recent years has left many farm owners cash rich and opting for land purchases for personal and business investments. The tangibility of land and the ability to grow their operation makes land a preferred investment for the owner operator. Producers are being more realistic with their land purchases as they give more attention to the economics of the asset and seek increased financing.  

  

Even with lower grain prices, record grain harvests will keep net farm income quite positive in 2015. This factor should keep the current market fairly stable for the time being.  

  

"As we forecast further out into late 2015 and 2016, circumstances could shift," said Dickhut. One of the factors that could impact values moving into 2015 is the potential for rising interest rates. If rates increase gradually, as predicted, market impact should be minimal in the short term.  

  

Longer term, world demand for water, food, fuel and fiber will determine commodity prices which will affect future land values. As long as the supply of land for sale remains low and demand continues to be present, land values will be supported, according to Dickhut. 

Farmland investment is still a positive long term opportunity for most producers and investors. Despite slight downward shifts, the land market remains stable and supports business expansion for farm operators looking to grow their businesses and investors wanting a long term asset. 

  

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

  

  

  

 


Yes, I want to receive e-mail updates on real estate listings, auctions, and real estate news. Click Here! 

 

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; 

Brock Thurman, Commodity Marketing Specialist, AFM, and Area Vice President for Kansas and Oklahoma at (620) 825-4320 or BThurman@FarmersNational.com. 

Mike Lansford, Area Vice President for Texas at (817) 884-4414 or MLansford@FarmersNational.com. 

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

  

  

  


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 us 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. 

  

Click Here to Search FNC Listings 

  

Sold Sign 2012  

RECENT LAND AUCTION RESULTS 

$12,087/Acre Douglas County, Illinois 

$12,000/Acre Dallas County, Iowa 

$7,700/Acre Cass County, Nebraska 

$11,322/Acre Douglas County, Illinois 

$10,400/Acre Dallas County, Iowa 

  

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

  

LAND AUCTION!  

480 Acres Stanton County, Kansas 

Tuesday, June 9, at 5:00 PM. Private Auction - Phone Bids Only. Contact Agent for Bidding Information.  

  

Offered in three tracts. Income production from CRP with buyer to receive the entire 2015 payment. Immediate possession of the pasture at closing. Tracts are contiguous. All owned minerals will be conveyed with this sale.

Property is located from Manter, Kansas: five miles south on the Manter Grade and two miles west on Road 21.

For additional information, please contact Cole Owens, Agent, at (620) 276-4424 or (620) 521-1450
or click here. 

  

LAND AUCTION!  

862.83 Acres Lincoln and Logan Counties, Oklahoma 

Wednesday, June 10, at 6:00 PM, at the Marjo Operating Company Field Office in Carney, Oklahoma.  

  

855+/- acres selling in 11 Tracts! 753.42+/- acres in Lincoln County, Oklahoma, and 109.44 +/- acres in Logan County, Oklahoma. Tracts consist of pasture, recreational land, hunting, ponds, heavy timber, hay meadows, home site, and manager's quarters. 3% Buyer Premium. Refer to attached flier for individual tract information.

To view the 109.41 acres in Logan County, Oklahoma (Tracts 9 and 10), click here.

For additional information, please contact Stacy Lee Callahan, Agent, at (918) 710-0239 or Brock Thurman, Agent, at (620) 825-0576
or click here. 

  

 

Important Links 

Your Current Weather  

Chicago Board of Trade  

Kansas City Board of Trade  

  

  

   

  

2012 summer land report cover web 

Special Report: America's Top 30 Auction Houses 

Farmers National Company was named a Top Auction House in the United States as well as a Best Brokerage Company by The Land Report - The Magazine of the American Landowner. 

 

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