A recent survey conducted by the private lender Rabobank found nine in ten farmers (88%) plan to keep the size of their farm the same for next year. That figure is virtually unchanged from last winter (90%) when the survey was conducted previously. The survey did find a slight increase in the number of farmers who plan to sell land -- 5% in the current survey versus 2% in the previous survey. The number who said they plan to buy additional land remained unchanged from the previous survey at 6%.
These survey findings tend to support what we've seen in the land market this year. It can be very difficult to find willing buyers if the quality of the land offered for sale is not up to par or there is some other problem with the property. However, if the quality is top notch and/or it is the farm right next door, then the willingness to buy seems to re-appear.
The survey also found about 40% of those surveyed believe their income will be worse next year, when compared with previous surveys. However, 27% of respondents have some optimism that their income will improve. Additionally 66% of those surveyed said they had no plans to purchase farm equipment. However, farms in operation 40 years or longer are planning to buy equipment compared to newer farms, the survey found.
Click here for a copy of the survey results.
If interested in seeing a copy of the LandOwner newsletter, just drop me an email at firstname.lastname@example.org or call 800-772-0023.