Ag Land Sales Continue With Minor Settling

Land sales have continued to increase across the country, and Cole Nickerson, of Farmer's National Company, gives insight into the current sales trends for ag land in the US.

“Commodity prices really increased. We saw those land values shoot up, you know, just astronomically. And now, obviously, with interest rates rising, commodity prices falling, we're starting to see, you know, the other side of the equation on the land values, maybe a little bit of settling. It's been pretty amazing to see how resilient farmland is as an investment. Those values sure aren't falling as fast as they rose. But yeah, definitely a full cycle where we're starting to see the end of here.”

Nickerson says, although you cannot predict what will happen with inflation, interest rates and other related items, they can use trends to help navigate those waters.

“Historically, we see more of a stair stepping chart for real estate. We see those land values very rarely pull back. They kind of hit those highs and they maintain how long it stays flat. You know, that's the big question.”

Furthermore, according to the farmersnational.com website, successful farmland buyers continue to be local farmer operators in nearly 80% of all transactions, available cash has played a significant role in how aggressive buyers are able to bid on land sales.