Ag Land Sales Steady

Despite headwinds across the ag economy, farmland values are showing signs of stability. Jim Ferguson, Vice President of the East Central Area and director of Capital Advisors with a Farmers National Company, says ag land prices are holding steady, even as commodity prices and farm profitability face pressure. He adds that more sales are moving to auction, driven by continued buyer demand.

“In a competitive market, there's still high demand, but buyers are definitely a little bit more, they're paying a little bit more attention to the asset, as opposed to years past, where it just kind of came up for sale, people were going after it.”

Ferguson adds that the ag land market has become more hyperlocal, with buyers placing greater emphasis on proximity to their main operation and property details such as soil fertility and any improvements needed.

“They look a little finer of productivity of the farm. You know, interested in yield history, what improvements have been made, what improvements may need to be made? So there again, years past, it was almost like if it was in maybe a larger radius, but it was available and decent farm ground. You just saw a lot of interaction. And what the market's showing now is more of a hyperlocal activity. You know, even, even if it might look like a decent farm on paper, many times the local operators right there might know Hey, that that farm lays a little wet in certain section or whatnot, and they all start having conversations about that.”

Jim Ferguson with Farmers National Company.