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January 18, 2021
Prices for top-quality cropland sold through our auctions and listings have increased significantly since harvest according to Brian Mohr, Area Sales Manager for Farmers National Company. Demand for good farmland has definitely increased.
Producers faced challenges in 2020 following up a hard 2019. The farmland market remained stable throughout the year and strengthened in the last quarter. Producers across the Northern Plains endured economic challenges with interruptions to livestock deliveries, weather issues, lower ethanol demand, and a late season drought in some areas.
Government payments, crop insurance, low interest rates, and rising grain prices sustained farmers' interest in buying land especially in the fall time frame. Farmers are currently buying 90% of the top-quality farmland that comes up for sale and are fueling the strong demand driven land market. Demand and prices for lower quality cropland are flat commented Mohr.
We are fortunate at Farmers National Company to have the most complete tool box of auction and sales methods of anyone to sell land. This includes all variations of online auctions and written bid sales. Our agents use the best sales method available to bring about a successful sale for our clients observed Mohr.
Farmers National Company's land sales volume was up 49% during October and November compared to last year despite there remaining a normal to lower supply of land for sale in the overall market. Looking ahead, Mohr comments investor interest and farmer demand will continue to drive the land market in 2021 and I expect we will see strong prices as we start the year.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|