Competitive bidding pushes land prices higher
Farmland sales prices are up 5-15% in the past six months.
National Hog Farmer
Jun 08, 2021
Interest in purchasing agricultural land has grown since a coronavirus pandemic-induced slowdown blanketed the land market last spring. Farmers are feeling more financially secure as very strong commodity prices arrived on top of large government payments in 2020. This is propelling farmers to bid more aggressively for additional land than has been the case during the past six years.
“Farmland sales prices are up 5-15% in the past six months with most of the increase coming since the first of the year,” said Randy Dickhut, senior vice president of real estate operations at Farmers National Company. “Competitive bidding among interested buyers is really pushing land prices right now.”
Individual investors and both first-time and experienced buyers are stepping into the land market as they search for a safe, long-term real estate investment in a low interest rate environment. Investor buyers seldom outbid farmer-buyers for a good farm unless they have 1031 tax-deferred exchange funds to spend in a short time period.
The increase in ag land prices is happening in most areas of the Grain Belt and with most types of land...