Page 34 - MWC 03-11-2021

Will the Surge in Land Prices Continue? The Midwest Cattleman · March 11, 2021 · P34

2020 provided increased interest in land purchases. cropland by farmers and investors
What started out with bet- The demand for land is the driv- is currently selling for its clients is will continue for now, Dickhut pre-
ter-than-expected sales prices at er of the current land price surge. near record levels at $300 million,” dicts.
land auctions prior to fall harvest “Values for good cropland are Dickhut says. In the land market, the same
extended into very strong prices at strong right now with more farm- The new year will bring a re- supporting factors that have been
some auctions during October and ers stepping up to buy, as well as newed examination of the under- keeping ag land values stable the
November, surprising many. a growing number of individual lying factors propelling land pric- past few years are expected to
carry on in 2021. The additional
“Farmers National Compa- investors. Buying interest from es. There will be no large influx of
ny had auction sales in several farmers has increased as they an- government cash for producers in factor driving land prices at the
states during this time where land ticipate a better income year in 2021, but grain prices are signifi- end of 2020 is the stronger demand
sold near levels last seen in 2012. 2020 than once thought,” Dickhut cantly higher so that more of net by both farmers and investors.
In specific instances, prices for says. farm income will come from the “Calls from buyers and sellers
good-quality cropland in the heart Higher commodity prices and market. Interest rates continue to come in daily at Farmers Nation-
al Company. Interest in land and
of the Midwest are up hundreds to the historic influx of government be historically low, which supports ag land in particular grew in 2020.
thousands of dollars per acre more payments in 2020 have helped the strong land prices.
than anticipated,” says Randy financial condition of many farm- Looking ahead, the supply of ag Looking ahead, if nothing unex-
Dickhut, senior vice president of ers and therefore their interest in land on the market will not change pected happens to challenge the
real estate operations at Farmers productive land. much as it remains mostly inher- current land market, land prices
National Company. Demand for all types of land itors, estates and non-operating will continue to firm up in 2021,”
What is propelling the land has also seen an increase. As a re- families who sell. Farm finances Dickhut says.
market, and will this current surge sult of COVID-19, a growing num- will be adequate for another year FarmersNational.com
in prices continue? ber of individuals have become in- to avoid an increase in forced sales
Agricultural land prices have terested in land as an investment. by lenders. Active demand for good
been fairly stable in the past sev- An individual might be interested
eral years despite the gyrations of in a rural acreage so they can have
the ag economy. Producer incomes a place outside an urban area, or
were taking hits, but the land mar- it might be cropland if they want
ket took it in stride except for the a safe, long-term investment. Bot-
hardest-hit areas or segments. The tom line, buying interest for land
factors supporting the land mar- in general is up.
ket remained constant during this “The overall supply of good
time, which included historically cropland for sale is on the low
low interest rates, a lower supply side and is similar to the past few
of land for sale and adequate de- years. Despite the slower ag land
mand for good cropland about ev- market, the dollar amount of land
erywhere. that Farmers National Company

Located 45 mi. SE of Kansas City, Mo on 58 Hwy. east at
Modern Kingsville Livestock Auction Center at Kingsville, MO

Make Plans To Attend Our Next

Special Cow &

Bull Sale

Saturday, March 20th

11:00 am

All Consigners & Buyers Welcome
Call 816-597-3331 Office

Rick, Jeremy or Jared Anstine
816-258-3421 • 816-716-9288 • 816-878-5229

Website: www.kingsvillelivestock.com • email: kingsville@earthlink.net