What’s Next for the Land Market?
By Ashley Davenport, Hoosier Ag Today
Jun 23, 2020
There was a lot of optimism and hope for agriculture in 2020. COVID-19 has impacted nearly everything, including land market.
According to Farmers National Company, auction sales in 2020 were steady to stronger than anticipated. Randy Dickhut, senior vice president of real estate operations, said that was credited to the prices paid.
“There were MFP payments in producers’ hands, low interest rates, low supply of land for sale, and grain prices were ticking up,” said Dickhut. “All of that helped support land values.”
When there were drops in ag demand, Dickhut said it impacted farmers directly, and landowners indirectly.
“That put a lot of caution in the land market,” he said.
However, through the end of the spring land auction season, good-quality land sold at a steady price.
“Lower quality dropped some, and there were fewer people thinking about selling and a few less thinking about buying,” said Dickhut. “There was a lot of activity going on, it was just slower.”
A lot of land changes hand pre-harvest, post-harvest, and into the winter months. Farmers National is seeing a lot of that interest on both the buyer and seller side of the equation.
“I don’t think it’s going to be any barnburner,” said Dickhut...