Winter is a busy time for ag land sales. According to the Farmers National Company, it is a seller’s market right now.
Buyers have become more aggressive, bidding higher to get the food quality ground. Investors have an appetite for farmland too, and the institutional funds are still in the market.
Senior VP of Real Estate Operations, Randy Dickhut says that there is not much out there to pick from.
“There’s just less supply of farmland, especially the good cropland for sale than maybe is normal. It’s not a big drop, but there is still a little less on the market,” he explains. “So, supply and demand, if you have a little less for sale and more demand, it usually boosts the price up, along with the interest rates, along with the better optimism in farm economy, with better commodity prices, and so forth. So, that creates a seller’s market.”
He says that the pandemic has impacted the market and he anticipates sales will pick up later this year.
Related:
Ag Economic Insights discusses the trends to look for in the 2021 farmland market
Farmland prices in the Corn Belt are increasing
11 million acres of farmland were removed from production between 2001-2016