Farmers National Company surveyed its agents, and is reporting record land sales of $750 million in 2013. They say activity in the first half of the year was slower, but sales turned around and finished strong for the year. For 2014, some states had an increase in value for high-quality land, while others decreased a bit. Some values remained flat.
“Farms remained profitable in 2013 despite lower commodity prices, in part due to reductions in fertilizer expenses of nearly 30 percent,” said Dickhut. “This is prompting farm owners to continue buying premium land to expand their operations. Interest in average to medium quality land has waned, slowing activity for such property.”
While land prices have stabilized compared to the double-digit price increases seen in recent years, levels are at historical highs. Prices per acre for high quality land range nationwide from $3,500 to as high as $12,000 to $13,000 per acre in areas of Indiana, Illinois, Iowa, and Nebraska. Values in the Upper Midwest are also very strong with sales reaching $10,000 per acre.