The Farmers National Company says there are more motivated land buyers in today’s market than there are willing sellers.
Land values have remained quite stable in the Midwest despite the pressure from lower net farm income, declining commodity markets, higher interest rates, and increased input costs.
“There are many factors for buyer motivation, but much of it can be explained by mindset translating to demand,” says Paul Schadegg, senior vice president of real estate operations at Farmers National. “Farm operators are still the primary buyers of ag land, and their mindset revolves around reinvesting in their farm, expanding operations, and utilizing today’s farm equipment fully.”
The Land location also plays a part in decision-making as it often hasn’t changed hands for generations, and once sold, “It may not be sold again,” he added. Across the industry, land listings are down, on average, by 25 percent from the active market between 2020-2023.
-NAFB