Recent farmland sale prices and values have increased to levels never before seen in the agricultural land market.
Paul Shadegg, senior vice president of Real Estate Operations at Farmers National, says the momentum in the farmland market began building 25 years ago. But is it sustainable moving forward? There continues to be strong interest in buying ag land across the U.S. Both individual buyers and land investors have created this competitive atmosphere in the agricultural real estate market. Shadegg and Farmers National predict that will increase moving through the second half of 2023.
At the same time, properties offered to the market will likely be limited, which will help sustain current values. They also expect to see a plateau in land values based on past agriculture cycles and a new normal in land values. Land values will continue to be driven by buyer competition and available supply for sale.