OMAHA, Neb. — Buyers are actively pushing land prices in Iowa, Illinois and Missouri with sales prices in some areas reaching near the 2014 peak in values.
“Iowa cropland prices statewide are up 13 percent since January while Illinois’s prices are up 10 percent,” observed David Whitaker, area sales manager for Farmers National Company.
Missouri increases are less but still significant.
“We are seeing $13,000, $14,000 and $15,000 per acre sales for good cropland at our recent auctions. Medium quality farms are also selling well now which is a change from the past few years,” according to Whitaker.
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 seven-dollar corn drives the demand for good cropland in the Corn Belt. It is making farmers even more bullish to buy farmland,” Whitaker said.
Competitive bidding among potential buyers is delivering the best sales prices to sellers, Whitaker said.
“If you want top dollar in my area, a seller needs to take their land to auction to bring out all potential buyers,” he suggested.
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,” Whitaker 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