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February 18, 2020
Farmland sales have picked up the pace somewhat after a slow start during much of 2019 as additional farms come on the market, a trend that's especially true for the Eastern Cornbelt where sales activity has been markedly slower the past year or more.
"We are seeing a good increase in sale activity at Farmers National Company as we are moving through the winter months. Our agents are working with landowners with larger acreages who are deciding to sell their land," said Roger Hayworth, area sales manager for Farmers National Company. "The majority of those selling are inheritors or estates. Most of the sales are through private treaty listings with a few bid sales today whereas in the past there were more auctions."
The ongoing lower supply of land for sale on the market has helped support land prices.
Good quality cropland is in demand and remains steady to slightly stronger. Lower quality land that has seen a price decline takes more time and effort to sell.
Looking ahead into the coming year, attention turns to what is going to impact the farm economy and the land market. Hopes for improved commodity prices sometime sooner than later comes on the heels of the phase one deal with China. Despite the historic late planting season, area yields were better than expected and near average helping maintain the financial condition of producers. This, along with the last of the 2019 MFP payments has helped put a bit of optimism in farm country and the land market. Land is a long-term investment and farmers and investors are feeling better about an investment in land.
Corrections from Last Week's Land Market News:
- I inadvertently said the last of the "2020" MFP payments were on the way when this should have been "2019".
- I said the USDA came out with a prediction for 2020 that net farm income would decline 9% from 2019. Actually, the USDA Economic Research Service forecasts for 2020 that net cash farm income would decline 9% while net farm income (accrual basis) would increase 3%.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|