Farmers Continued To Buy Farmland in 2021
February 22, 2022
The
question about who is buying US farmland comes up quite often from different
sources. Historically, farmers and ranchers purchase the larger share of
agricultural land that comes up for sale in an area. Part of the land is sold quietly
between related parties or between landowner and tenant. The rest is sold in
the open market through a private treaty listing or auction. Typically, farmers
buy 70 to 80% of the good farmland that comes up for sale in the grainbelt
states. Local and out of the area investors (individuals) buy another 20% of
the farmland that is sold leaving a small percentage purchased by others
including institutional or corporate buyers in states where allowed.
Recent survey data shown below from
the Tenth District Federal Reserve documents the share of farmland purchased by
farmers in the district during recent years. Other grainbelt states would have
similar numbers. (The Tenth District covers Nebraska, Kansas, Oklahoma,
Colorado, Wyoming, parts of western Missouri, and parts of northern New
Mexico.)

Randy Dickhut
Senior Vice President - Real Estate Operations
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