Forward thinking about Farmland!
As we move towards spring, we will see a healthy amount of land continue to hit the market. I am seeing a lot of work being done by sellers and real estate companies to accelerate their land to the market as fast as possible to try to capitalize on the outstanding prices of today. The dust has settled on 2021 and farmland prices will continue to move forward. They may move sideways for a while, but I don’t feel that they will go backwards. (For example: I don’t see pickup trucks going backwards in price. Once the market has changed, the new market value has been set.) The government has said they are going to raise interest rates and have started to do so already. I see many people trying to hedge against inflation and are moving their investments to farmland. That being said: I think the changing interest rates will have a greater affect on the residential market than it will on our farmland. The biggest question is: Will the farmland sales continue to flood the market, or will they slow down as the rates increase? Only time will tell on what the interest rate increases will do. If the market moves, sellers need to know and understand that “your farmland is worth what someone is willing to give” and not the price you saw in some article like this one. Every farm is different. They all have different markets, pressures, negatives and positives.
Results from the 68 Sales (7,665 acres) this last month have the average for the state at $10,355 high quality ground at $13,601/ acre, and medium quality ground averaging $8,425/ acre. Low quality ground has moved up at an average of $5,184/ acre. Our Mission; Is to be your “Trusted Advisors”, Our obligation; is to market your farmland to the largest audience yielding you the most successful outcome!
Just like the farm equipment, technology, and inputs are ever changing, so are farmland prices and how we market your farm. Don’t leave your most valuable asset to just anyone…. Call today to see what your farm is worth and get a free land valuation!