June 7, 2021
Farmland sales prices are up 5-15% in the past seven months with most of the increase coming since the first of the year. Buying interest in agricultural land has grown since a Covid-19 induced slowdown in the land market last spring.
Farmers are feeling more financially secure with very strong commodity prices on top of the large government payments received in 2020. This is propelling farmers to bid more aggressively for additional land than has been the case during the past six years. Individual investors, both first time and experienced buyers are stepping into the land market as they search for a safe, long-term real estate investment in a low interest rate environment.
The increase in ag land prices is happening in most areas of the grain belt and with most types of land. At Farmers National Company auctions, we are seeing competitive bidding push prices for good cropland to levels approaching 2014 values. Average to lower quality farms are experiencing stronger sales prices too while pasture land increases are more modest.
In order to get top dollar in the current land market, the seller has to ensure there is true competitive bidding. Farmers National Company and its agents employ the most comprehensive platform of competitive bidding systems available in order to get the best price for sellers including public outcry auctions, a full array of on-line and simultaneous live auctions, various written bidding mechanisms, and other bidding or listing platforms.
In a rising land market, it becomes more difficult to predict what a farm will actually sell for on any given day especially when there is demand from both farmers and investors. The best way to sell cropland in the current market is to take it to auction or some form of competitive bidding that brings together the potential buyers and lets them push the price.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|