Source: Farmers National Co. news release
As we work our way through the fall and early winter farmland sale season in which the volume of auctions, bid sales, and listings picks up, we are seeing a range of results across the areas served by Farmers National Company. Regions will vary in the amount of farmland for sale with some remaining down from normal and others being up nearing average volume.
Land prices also vary by location and quality with some land moving up in value, most remaining near steady, and some declining for various reasons. In looking at both volume of sales and prices, the land market is either up a bit, down a little, or steady, all depending on where.
Concerning the volume of land being sold, the eastern cornbelt region remains down or still on the slower side of normal. Even though Farmers National Company is working with several larger acreage listings, sellers are somewhat hesitant to sell farmland due to the historically delayed planting and harvest season and the uncertainty that this year produced.
Crop yields have generally turned out better than once anticipated, but still off from recent record yields. Sale prices have remained basically steady for quality farmland due to less for sale and low interest rates.
Other regions are experiencing an increase in sales activity. For Farmers National Company, auction and sales volume in Iowa has become more active with mainly estates and inheritors as the sellers. Good quality cropland prices remain about steady from a year ago as does recreational land.
The northern plains region reaching into the Red River Valley has seen one of the toughest years ever especially with a weather delayed or terminated harvest season. The ramifications of the harvest and financial issues will be known more fully later in the winter after accounts are settled and financing is secured for 2020.
Right now, the grain belt is still working through the final stretches of the 2019 harvest. Grain prices are being watched for a glimmer of response to lower production and hopes for improvements in trade issues. Producers will soon be tallying up their finances for the year and meeting with lenders to plan for 2020.
As winter moves along, we will know more about how the land market will respond to all the factors that may influence the amount of land sold and prices. Stay tuned to see if it will be up, down, or all around over the board.