Here We Go 2023! Let’s Talk Globally…
The land market has seen steady growth in recent years, driven by increasing demand for agriculture and rural land. The demand for farmland is being driven by the local buying power and increased interest in hard investments. Appreciation, inflation hedge, diversification, cashflow and sustainable investments are bring a new architype of buyers to the market. The ongoing rise in interest rates and the uncertainty has also made people look to farmland for the best investment. (Example: The Pro-Football Players that we heard recently invested in Iowa farmland.)
Despite this demand, the land market has not been immune to the economic challenges posed by inflation. Input prices and interest rates have led to a slowdown in the overall land market. However, we believe that this slowdown will be short-lived and that the market will continue to grow in the coming years.
The current average price for agricultural land in the United States is around $4,000 per acre, although prices can vary greatly depending on the location and quality of the land. The highest prices are typically found in the Midwest and Great Plains regions, where fertile soil and abundant rainfall make it ideal for farming. (As we all know already….Iowa is a great place to own farmland!) Meanwhile, arid regions in the West and Southwest tend to have lower prices due to the challenges posed by dry climates.
Despite these challenges, my outlook for the farmland market remains positive. The global population is expected to continue growing, and the demand for food and other agricultural products is likely to increase along with it. This creates opportunities for farmers to grow their businesses and meet the demands of a growing population. With advances in technology and growing demand for food, the future of farming looks bright!
Seller’s if you are on the fence about selling…don’t wait…get in and get going! Buyer’s do your diligence to see what you can do financially if the land comes up for sale right next to you…be ready!
Iowa Results: Results from the 72 Auctions (7,245acres) this last year have the average for the state at $12,320/acre, high quality ground at $14,296/ acre, & medium quality ground averaging $10,707/ acre. Low quality ground has remained steady at an average of $7,972/ 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! David & Ann Whitaker | Iowa Land Guy When you think of Farmland Think of US!