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If you remember, we began to see an uptick in farmland prices last fall as producers and landowners started to realize the effect of the large influx of government payments along with better yields than expected and strengthening grain prices. This put more optimism and capital in producer's hands- which translated to a renewed interest in purchasing additional land for their operations. Buying interest by individual investors was also buoyed by the outlook for higher commodity prices and the fears of inflation. Buying interest and the underlying improvement in farm income increased the demand for farmland while there was not yet more land on the market resulting in the beginnings of stronger land prices last fall.
Selling interest by landowners, estates, and recent inheritors picked up during 2021 as land prices rose throughout the year. Buying demand kept up with and surpassed the supply of farmland for sale further strengthening prices. With all this going on, selling a farm through some type of competitive bidding became the best way to see what the market would pay. Thus, the increase in land auctions.
The outlook for auction
sales in December looks good as the typical slow down to the end of the year
plays out. The winter and early spring land sales season
will be active and we will know more about how active as the calendar flips
into the new year.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|