January 17, 2022

Land sales continued at a torrid pace at Farmers National Company during the last quarter of 2021. The dollar volume of land sold by the company during October through December was up 53% compared to last year and up 106% from two years ago. The number of transactions was up 23% and total acres sold were up 11% year over year. This was indicative of the increase in the selling of land in various regions. Sellers came to the land market because of the opportunity to capture the much higher land prices and for some, to get ahead of what was once thought to be potential tax changes. 

Certain states or regions saw more sales activity than others. Iowa continued to be the most active with selling and with setting new price highs. Other states did not see the same level of activity increases due to several reasons. Some regions have less non-operating landowners who are typically the prime sellers of farmland in the market. Prime tillable farmland was in the most demand and areas that have more variable land uses probably saw less sale activity at this time. 

Competitive bidding was the prime sales method for sellers to determine what the market would pay for their land. Auction sales at Farmers National Company were up 69% year over year and dollar volume was up 75%. Clearly, some type of bidding process came into play with the increased activity and prices. 

Going forward, land sales activity for the first quarter of 2022 seems to be leveling off to more normal for this time of year. Many sellers moved their decision into 2021 as opposed to a wait and see approach. Sale activity will be active over the next three months, but not at the pace of the last few months.

Randy Dickhut  

Senior Vice President - Real Estate Operations 

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