While research suggests that there has been less farm and ranch land for sale than usual over the past few years, Farmers National Company is reporting a 50 percent increase in listings. Experts say the industry is experiencing a post-harvest bump in land prices in most grain producing areas, meaning that with above average crop yields in most locations, farmer optimism has increased as has the bidding for quality cropland. Meanwhile, continued low interest rates are helping create a demand for ag land as a long-term investment for individuals and institutional funds.
A company spokesperson says, “There is still enough purchasing power in the hands of farmers to compete for good land.” However, the next six months will determine what the market does next, with many negative factors looming. Low grain prices have depressed farm income and reduced cash flow, leaving less available funds for farmers to purchase land. Farmers National Company is proclaimed as the nation’s leading agricultural landowner services company.
Source: NAFB News Service