Buying interest in farmland has been stable for the past several years.
However, the level of interest grew starting last summer in the eastern Corn Belt.
Farmers National Company reports prices for top-quality cropland sold at auctions and listings increased significantly since before harvest.
Demand for good farmland has improved, and good cropland is selling for prices last seen in 2013.
Government payments, low-interest rates, and rising grain prices sustained farmers’ interest in buying land, especially in the fall.
The boost in net farm income provided the financial comfort for farmers to step into the land market.
Farmers National Company’s land sales volume was up 35 percent during the final quarter of 2020 compared to 2019 despite a normal to lower supply of land for sale in the overall market.
Looking ahead, the company suggests investor interest and farmer demand coupled with a low supply of good cropland on the market will continue to drive the land prices in 2021.
(Story Courtesy of the NAFB News Service)