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July 19, 2021
Agricultural landowners are very much aware of the strong rise of prices for farms in most of the grain belt. It is being talked about in the coffee shop, broadcast on ag media, and also discussed in national publications. Rising land prices is the topic of conversation from Main Street to Wall Street.
At Farmers National Company, we are continuing to see an uptick in the number of landowners who are wanting to sell their land in the months ahead. The calls picked up in the spring after the evidence of the strong price increases came in over the winter. Higher land prices at or near the peak of the 2013 top are prompting additional owners to consider a sale of their land.
Who is selling a farm today? Recent inheritors of a farm and estates are considering selling it now with the higher prices. These sellers are usually made up of groups involving more than two to three owners. A sale is often easier and generates more immediate cash for them than keeping the farm and splitting the annual rental income.
Other sellers are individuals and family groups who have owned the farm for some time, but now have a reason to sell prompted by a need for cash, succession planning, or to simplify their estate for their heirs. Some are considering a sale as they are concerned about future economics or potential tax law changes.
After a number of years in a flat and slower land market, the strong prices of today are prompting an increase in selling activity. Month after month Farmers National Company is experiencing stronger sales activity than the past few years.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|