Recent value adjustments in the land market still leave land values at historically high levels in the longer term view. Price softening is happening, but at different rates depending on the region, prices for major commodities in that region, and quality of the land. Profitability from record crop incomes supported by insurance coverage, has kept farm operations in the black and producers interested in adding land.
“Buyers are being more realistic when considering land purchases which has reduced the fervor of rapidly escalating prices seen at land auctions in recent years,” said Randy Dickhut, AFM, Vice President of Real Estate Operations of Farmers National Company. “Owner operators continue to be the main purchasers of agricultural land comprising nearly 90% of buyers in many areas.”