Source: blog by Randy Dickhut, Sr VP/Real Estate Operations, Farmers National Co., Omaha, NE
Buyers are actively pushing land prices in the northern plains as sales prices in some areas are nearing highs of the past. “We are seeing land prices up 10-15% for good cropland in the area,” observes Brian Mohr, area sales manager for Farmers National Company.
Prices for ranch land and pasture are relatively stable and not experiencing the same increases as good cropland in the region, but prices have moved higher. Investor buyers are showing more interest in ranches in the West River region. Drought concerns have tempered buying interest in the most susceptible areas.
The inventory of farms for sale is presently at a low point for all land brokers as buyers have been aggressively purchasing what has been listed for sale. Land buyers are watching commodity prices and interest rates to determine how aggressive they will pursue new purchases.
If deciding whether to sell their farmland, sellers are taking notice of the higher land prices and watching how tax policy changes might affect the timing of a land sale. The expectation is for more farms and ranches to come up for sale as the year moves along due to these two factors. “We have already seen increased interest by some landowners as we field calls daily about them wanting to sell in the coming months,” says Mohr.