As combines roll into fields this fall, there is a renewed sense of optimism when looking at the real estate market. The current state of the ag land market is resilient, and the demand for high-quality farmland remains strong in the face of higher interest rates and lower commodity prices, according to Farmers National Company.
However, the market will likely return to a more normal flow, evidenced by the slowdown of the appreciation rate of ag land, as well as the sales volume at Farmers National Company. Regional drought pressure across portions of the Corn Belt have also softened short-term demand for land. Areas highly impacted by the drought have seen seasonal pressure, with the lowest-quality farms impacted the most, while demand for higher-quality land has remained stable.
The solid demand for ag properties from people interested in expanding their farm operations or investment opportunities seems to be driving the interest in high-quality cropland.