Another Rally in Farmland Prices?

A farm real estate specialist suggests there could be another rally in farmland prices. Tim Meyer is a site leader and realtor with Steffes Group. “This land market is a long way from going down. We’re steady to even maybe a bump higher between now and the end of the year.”

He suggests that, in fact, demand has increased. “Folks are still looking for more farm ground. Even though the interest is high, I think it’s still advantageous to buy ground and they’re still looking to pick up another farm.”

Meyer says the 2023 harvest could have an impact on land prices in states like Iowa. “I think there are some areas that will see a little bit of a rally even on the land price because crops have been so good and folks are taking advantage of that.”

According to Meyer, farmers still have a good amount of cash on hand and that’s helping drive the market.

EDITOR’S TAKE:

Don’t just take our word for it, farmers have money to spend and the fact they are still looking at more land should provide some pretty good support for that claim. In this article, another farm real estate expert substantiates that view. That also means that the balance sheet showing land as an asset will keep growing as well, which only improves potential borrowing power. The CAG team encourages you to find a way to bring these farmers/ranchers into your dealership. A number of incentives will get their attention, such as a post-harvest service special, or a farmer appreciation breakfast, lunch or dinner. Perhaps a ride and drive event? Be sure to promote AgPack® that will save them up to $32,000 in operating costs. And, of course, remind the farmers/ranchers of the advantage of leasing or purchasing vehicles that qualify for special treatment under Section 179 of the IRS tax code. Don’t wait, act today!