Farmers National Company says what started with better-than-expected sales prices at land auctions before last fall’s harvest extended into continued higher prices in October and November.
“Farmers National Company had auction sales in several states during this time where land sold near levels last seen in 2012,” says Randy Dickhut, senior vice president of real estate operations.
“In specific instances, prices for good quality cropland in the heart of the Midwest are up hundreds to thousands of dollars per acre more than anticipated.” Ag land prices have been fairly stable in recent years despite the up-and-down agricultural economy.
The demand for land is the driver of the current land price surge. “Values for good cropland are strong right now, with more farmers stepping up to buy as well as a growing number of individual investors,” Dickhut says.
“Buying interest from farmers has increased as they anticipate a better income year in 2020 than once thought.” Demand for all types of land has also seen an increase. As a result of COVID-19, a growing number of individuals have become interested in land as an investment. The overall supply of good cropland for sale is on the low side and is similar to the past few years.