Search All Listings
Search by Real Estate Listing #
Search Site
Search All Listings
Search by Real Estate Listing #
Search Site
Talk to Us
Call Us Facebook Twitter LinkedIn YouTube Instagram
Email A Friend
Talk to Us
Call Us Facebook Twitter LinkedIn YouTube Instagram
Email A Friend
Will We See A Post Harvest Bump in Land Prices Like Last Year?
You are here:   Blog  »  Agricultural Real Estate  »  Will We See A Post Harvest Bump in Land Prices Like Last Year?

November 12, 2018 

 

The number of land auctions and sales in the grainbelt picks up each year after the completion of harvest. Farmers are wrapping up field work and can turn their attention to land sales, and at the same time, some sellers are wanting to complete the sale prior to the end of the year or the next cropping season. This fall is no exception as Farmers National Company is seeing the uptick in the number of sales.

Last year after harvest, sales prices for good quality farmland increased a small amount above the flat line trend. Exceptionally good harvest yields added to farmers' revenue beyond what they had anticipated, giving them a little more optimism for making capital purchases of land. Also, there continued to be a lower supply than normal of high quality farms for sale, which increased the competition for what did come on the market. Competitive bidding brought about the post harvest bump in land prices that we saw last season.

So what will we see in 2018 with post harvest land sales? Generally, the grainbelt experienced good to exceptional yields except for the areas hit by drought or too much rain. Good yields lend to higher gross revenues for producers despite lower soybean prices this year. But, this year is different than last year in a number of important ways. For one, harvest has stretched out and is not complete for some due to the wet and challenging weather. Secondly, soybean prices are being depressed by trade tariff issues and no one knows how long the effects of the tariffs will last. Finally, interest rates are slowly moving higher and even though rates are still historically low for land mortgages, this has to be considered when making land purchases.

With this said, Farmers National Company has already held very successful land auctions this fall in various locations that brought prices above expectations. Other auctions brought prices right at what was anticipated while there have been a few that have been delayed sales whereby negotiations are on-going to make the final sale of the property. Time will tell the direction of land values as we close out 2018 and move into the late winter selling season in 2019. You can follow our land sales results at www.FarmersNational.com in the Real Estate Sales and Auctions section.
 

   

Randy Dickhut 

Senior Vice President - Real Estate Operations  

All News  Category: Agricultural Real Estate News
Blog Home  Blog Home
Back to Top
Print Show Printable Page
Search Listings and Website
Search All Listings
Search by Real Estate Listing #
Search Site