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May 4, 2020
You have undoubtedly heard it hundreds of ways that we are in unprecedented times with the battle against Covid-19. Our thoughts and prayers go out to those suffering the health effects as it is everyone's goal for our nation and world to defeat this pandemic. We each know of someone economically affected by the shutdowns and procedures for containment as we look forward to a return to what can be normal after this.
We are fortunate for two major things at Farmers National Company. One is the fact that we have great employees and associates who are carrying on essential work during this challenging period. Secondly, we have a business model and services that allow the company and us as individuals to do business as usual for our clients.
Appraisal and valuation activity is fairly normal at this time as the demand for appraisals continues as people pass away, estates need valuations, lenders need valuations to make loans, landowners still want to divide their land, and legal issues still arise. Appraisers have several temporary protocol measures that had to be changed, but their work carries on.
Sellers and buyers are actively calling Farmers National Company agents as real estate business continues during this period. It is still too soon to tell how the land market will ultimately be affected by Covid-19. There will be investors wanting to purchase farmland as a safe haven asset during these uncertain financial times. There will still be inheritors and family groups wanting to sell to divide the cash or settle an estate. Farmer buyers will be present but more cautious as long as the ag economy is depressed. Purchases of recreational land and small acreages may increase as some people will want a piece of the country.
Real estate sales activity at Farmers National Company was good during the first six months of its fiscal year. Sales volume was up 12% compared to last year and up 9% from two years ago during what has been a slower time in land sales. Auction and bid sale activity was comparable to the past several years. Public auction methods were successfully modified in various ways to comply with crowd size and social distancing rules.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|