The information below has been supplied by dairy marketers and other industry organizations. It has not been edited, verified or endorsed by Hoard’s Dairyman.
REGIONAL LAND VALUE REPORTS
Iowa, Illinois and Wisconsin
“Prices for top quality cropland sold at our auctions are up $1,000 per acre or more since before harvest,” said David Whitaker, area sales manager for Farmers National Company. “Demand for good farmland has definitely increased.”
Despite the challenges faced by agriculture and producers in 2020, the farmland market remained stable throughout the year and strengthened in the last quarter. Iowa agriculture especially endured economic challenges with interruptions to livestock deliveries, the derecho storm, lower ethanol demand and a late season drought across much of the state.
“Government payments, crop insurance, low interest rates and rising grain prices sustained farmers’ interest in buying land especially in the fall time frame. Add in the growing number of investors who want to own farmland and you have a strong demand driven land market,” Whitaker said.
Public auctions are a common means of selling farmland in Illinois, Missouri and Iowa. COVID- 19 restrictions changed how farms were sold during the year depending on the time and the rules.
“We are fortunate at Farmers National to have the most complete tool box of auction and sales methods of anyone to sell land. This includes all variations of online auctions. Our agents and auctioneers were able to pivot on a dime when needed to bring about a successful sale for our clients no matter how we had to perform the sale,” Whitaker said.
Farmers National Company’s land sales volume was up 49 percent during October and November compared to last year despite there remaining a normal to lower supply of land for sale in the overall market. Looking ahead, Whitaker said, “Investor interest and farmer demand will continue to drive the land market in 2021 and I expect we will see strong prices as we start the year.”
Indiana, Michigan, Ohio and Kentucky
Owning farmland has always been a priority for farmers, but interest in this real asset by investors has grown the past year.
“Prices for top quality cropland sold at our auctions and through our listings have increased significantly since before harvest,” said Linda Brier, area sales manager for Farmers National Company. “Demand for good farmland has definitely increased.”
Despite the challenges faced by agriculture and producers in 2020, the farmland market remained stable throughout the year and strengthened in the last quarter. Producers across the Midwest endured economic challenges with interruptions to livestock deliveries, weather issues, lower ethanol demand and a late season drought in some areas.
“Government payments, low interest rates and rising grain prices sustained farmers’ interest in buying land especially in the fall time frame. Add in the growing number of investors who want to own farmland and you have strong demand driven land market,” Brier said.
Public auctions are a common means of selling farmland in the Midwest. COVID-19 restrictions changed how farms were sold during the year depending on the time and the rules.
“We are fortunate at Farmers National to have the most complete tool box of auction and sales methods of anyone to sell land. This includes all variations of online auctions. Our agents use the best sales method available to bring about a successful sale for our clients,” Brier said.
Farmers National Company’s land sales volume was up 49 percent during October and November compared to last year despite there remaining a normal to lower supply of land for sale in the overall market. Looking ahead, Brier said, “Investor interest and farmer demand will continue to drive the land market in 2021 and I expect we will see strong prices as we start the year.”
North Dakota, South Dakota and Minnesota
“Prices for top quality cropland sold through our auctions and listings have increased significantly since harvest,” according to Brian Mohr, area sales manager for Farmers National Company. “Demand for good farmland has definitely increased.”
Despite the challenges faced by agriculture and producers in 2020, the farmland market remained stable throughout the year and strengthened in the last quarter. Producers across the Northern Plains endured economic challenges with interruptions to livestock deliveries, weather issues, lower ethanol demand and a late season drought in some areas.
“Government payments, crop insurance, low interest rates and rising grain prices sustained farmers’ interest in buying land, especially in the fall time frame. Farmers are currently buying 90 percent of the top quality farmland that comes up for sale and are fueling the strong demand-driven land market. Demand and prices for lower quality cropland are flat,” Mohr noted.
“We are fortunate at Farmers National to have the most complete tool box of auction and sales methods of anyone to sell land. This includes all variations of online auctions and written bid sales. Our agents use the best sales method available to bring about a successful sale for our clients,” Mohr added.
Farmers National Company’s land sales volume was up 49 percent during October and November compared to last year despite there remaining a normal to lower supply of land for sale in the overall market. Looking ahead, Mohr comments, “Investor interest and farmer demand will continue to drive the land market in 2021 and I expect we will see strong prices as we start the year.”
Nebraska, Kansas, Oklahoma, Texas and Arkansas
Owning land has always been a priority for farmers and ranchers, but interest in this real asset by investors has grown the past year.
“Prices for top quality cropland in the Eastern Plains sold through our auctions and listings have increased since the beginning of the year,” said Paul Schadegg, area sales manager for Farmers National Company. “Demand for good farmland has definitely increased.”
Despite the challenges faced by agriculture and producers in 2020, the land market remained stable throughout the year and strengthened for good cropland in the last quarter. Producers across the Southern Plains endured economic challenges with interruptions to livestock deliveries, weather issues, lower ethanol demand and a late season drought in some areas.
“In East Texas, our sales of timberland are increasing as sellers and buyers get more active. Ranchland prices in the state are strong as demand grows for that type of investment. Good Delta cropland continues to strengthen. Western Kansas dryland farms are selling at prices not seen for almost a decade,” Schadegg said.
“We are fortunate at Farmers National to have the most complete tool box of auction and sales methods of anyone to sell land. This includes all variations of online auctions and written bid sales. Our agents use the best sales method available to bring about a successful sale for our clients,” Schadegg added.
Farmers National Company’s land sales volume was up 49 percent during October and November compared to last year despite there remaining a normal to lower supply of land for sale in the overall market. Looking ahead, Schadegg comments, “Investor interest and farmer demand will continue to drive the land market in 2021 and I expect we will see strong prices as we start the year.”
