OMAHA, Neb. — Buyers are actively pushing land prices in the eastern Corn Belt as sales prices in some areas are nearing the 2014 peak in values.
“We are seeing land prices up 9 to 11 percent for the good cropland in the area,” observed Linda Brier, area sales manager for Farmers National Company.
“At Farmers National Company auctions, we have seen sales well over $13,000 per acre for good cropland. Price levels vary by state, but good cropland is strong everywhere,” according to Brier. “Prices have definitely increased since fall and even more so since the first of the year.”
The current agricultural land market has more buyers than sellers. The inventory of farms for sale is presently at a low point for all land brokers as buyers have been aggressively purchasing what has been listed for sale.
“The prospect for $7 corn drives the demand for good cropland in the Corn Belt. It is making farmers even more bullish to buy farmland,” Brier said.
Competitive bidding among potential buyers is delivering the best sales prices to sellers.
“If you want top dollar in my area, auctions are a good way to bring out all potential buyers,” Brier said. “Also, buyers are being more aggressive bidding on traditional private treaty listings. Interest in solar development in some areas is also spurring demand for land.”
The expectation is for more farms to come up for sale as the year moves along due to the higher prices received and potential changes in tax policy.
“We have already seen increased interest by some landowners as we field calls daily about them wanting to sell in the coming months,” she said. “Our agents are busy booking auctions and sales for later in the summer and on to the end of the year.”
— Farmers National Company