Report: Ag land values remain resilient
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Agricultural land values in the Midwest remained strong in the second half of 2023, according to the most recent regional land value report by Farmers National Co.
The sharp increase in land values from a year ago that was primarily driven by strong commodity markets has slowed, according to a news release, but Farmers National Co. sale data indicates that values are holding steady despite rising interest rates and inflation. Buyer demand for cropland remains strong across the Midwest, while the supply of cropland for sale remains limited.
Nearly eight out of 10 buyers were local farmers, the Farmers National Co. said. Available cash continues to play a significant role in how aggressively buyers made a bid.
“Current market operator’s equity positions have narrowed over the past year and lending has increased as outlined in the most recent Ag Credit Survey from the Federal Reserve Bank of Kansas City,” Paul Schadegg, senior vice president of real estate operations at Farmers National Co., said in the release.
For 2023, Farmers National Co. completed nearly 700 transactions across the Midwest valued at about $600 million.
“Over the past 25 years, average land values have experienced steady growth following the 1980s farm crisis,” Schadegg said. “Under a strong ag economy, Farmers National Co. expects that trend to continue.”
Location and competition drove sales in the Midwest, said Jay Van Gorden, Eastern Region sales manager. An August auction in St. Clair County, Illinois, brought $18,000 per acre on 120.49 acres. In Gibson County, Indiana, an early summer auction of 80 acres brought a strong sales price of $13,400 per acre, Van Gorden said.
Employee-owned Farmers National Co. is based in Omaha, Nebraska. It manages more than 5,000 farms and ranches in 30 states comprising more than 2 million acres.