OMAHA, Neb. — Buyers are actively pushing land prices in the Northern Plains as sales prices in some areas are nearing highs of the past.
“We are seeing land prices up 10 to 15 percent for good cropland in the area,” observed Brian Mohr, area sales manager for Farmers National Company.
Prices for ranchland and pasture are relatively stable and not experiencing the same increases as good cropland in the region. Investor buyers are showing more interest in ranches in the West River region. Drought concerns have tempered buying interest in the most susceptible areas.
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 higher commodity prices drives the demand for good cropland in the region. It is making farmers even more bullish to buy farmland,” Mohr said.
Competitive bidding among potential buyers is delivering the best sales prices to sellers in most areas.
“If you want top dollar in my area, some type of open bidding such as a public auction, online auction or written bids brings out all potential buyers,” Mohr said. “Also, buyers are being more aggressive bidding on traditional private treaty listings.”
The expectation is for more farms and ranches 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” he 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