Interest in buying agricultural land continues to grow after a COVID-19 slowdown blanketed the land market in 2020.
A Farmers National Company release says farmers are feeling more financially secure because of rising commodity prices and large government payments last year. That is causing farmers to be more aggressive in bidding for additional land than has been the case during the last six years.
“Farmland sales prices are up 5% to 15% in the past six months, with most of the increase coming since the first of the year,” says Randy Dickhut (DICK-hoot), senior vice president of real estate operations with Farmers National. “Competitive bidding among interested buyers is really pushing land prices right now.”
The biggest increases are happening in the Grain Belt and with most types of land.
“We’re seeing competitive bidding push prices for good cropland to levels approaching 2014 values,” Dickhut says. “Average to lower-quality farms are seeing stronger selling prices too, while pastureland increases are more modest.”
He also says the demand for good farmland is outstripping the supply of available farms for sale.
(From the National Association of Farm Broadcasters)