The pace of farmland sales is picking up as the calendar heads further into 2020. Sam Kain, area sales manager for Farmers National Company, says the first six months of last year were as slow as he’s seen the land market in recent memory.
“The fall months and winter season saw an increase in the pace of land auctions,” Kain says. “The on-going lower supply of land for sale has helped to support land prices. Good quality cropland remains steady to strong.”
Farmers National recently sold a tract of land in Iowa for $13,000 an acre, which was way above expectations.
“Lower quality land takes more time and effort to get it sold,” Kain says. “That’s more typical of Wisconsin farms, due to the financial stress of the past few years in dairy. Good quality cropland still sells well in the state, while lower quality land or properties with dairy facilities struggle to sell.”
Looking ahead to this year, Farmers National says attention turns to what’s going to have the biggest impact on the farm economy and land market. Producers are optimistic about improvements with China but are now concerned about how soon grain prices might improve given disease outbreaks and world grain trade fluctuations.