September 3, 2019
Fall and early winter are busy seasons for selling agricultural land as it works well to close the sale after harvest and before a new cropping season starts in the spring. Land auction activity picks up prior to harvest in later August through September and expands after harvest. Farmers National Company agents and auctioneers are in the middle of the pre-harvest sale season holding auctions in various parts of the country. Good quality land is selling well as the extensive local, regional, and national marketing work has drawn potential buyers. Farmland that is more average or below continues to be somewhat softer in the market, but continues to sell in most cases.
There is definitely more uncertainty in the minds of landowners this year than most any other. Those in agriculture are aware of:
· The unknowns surrounding expected crop size and grain prices that won't be settled until after the harvest is in.
· Trade issues continuing to be fluid and no one knows when and how the effects on agriculture will evolve or finally, be resolved.
· Late and prevented planting on many farms has landowners asking about how this might affect leasing terms and rents for 2020.
· Added on top of the normal and seasonal questions there are those asking about the impact of the African Swine Fever on livestock production and international demand for meat, feed grains, and meal.
· Landowners are even asking about the impact of the growth in alternative proteins for human consumption.
More specifically, landowners who are thinking of selling their land sometime in the near future are asking the normal questions and then some:
· What are land prices doing and where is the trend headed?
· Is now a good time to sell or should I wait?
· With the ag economy depressed, is anyone buying farm and ranch land?
· Are trade issues affecting land prices?
· One final question in front of some landowners most affected by the wet planting season is will not planting my farm this year hurt the sale price of my farm if I sell this year?
No one has all the answers, but landowners, especially if they are considering the sale of their farm, are seeking help and advice from someone they trust to assist them in making this important decision. Only when you combine local knowledge of the land market with a national and international perspective can the trusted advisor help a landowner with their questions. A one sized answer doesn't fit every situation or farm, which is why landowners who are wanting to sell, seek out a broker they trust to give them sound recommendations based on vast experience both locally and in the bigger picture.
Farmers National Company currently has over $250 million of farms, ranches, and real estate for sale in 29 states.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|