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August 16, 2018
According to a report released last week by the U.S.D.A, the overall average value of farmland in the United States increased 1.9% since 2017. To farmers and landowners currently facing lower commodity prices and trade uncertainties, the land value increase is a head scratcher. Therefore, it warrants a closer look at the numbers.
For one, averages don't necessarily apply to individual farms or ranches as each has specific characteristics that create variations from averages. This includes different soil types, maintenance and improvement differences, and conservation enhancements. Secondly, local land markets behave differently in each area due to supply of land for sale and demand to buy. Lastly, the land value average covers the whole country with many types of land use and regional differences.
In order for a landowner to truly find out what the value is of your land or to analyze changes in land prices for a specific property, it is best to work with an appraiser or local land broker. Farmers National Company agents and appraisers work in their local areas and understand the land market they serve. This expertise is what is needed when analyzing land value trends for each landowner.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|