Demand For Quality Midwestern Farmland Outpaces Supply
Jun 14, 2010
Here is further confirmation of what we'be been reporting in LandOwner Newsletter since last fall -- demand for high quality farmland is much stronger than for lower-quality ground. There are several reasons for the additional strength. There is very little high quality land on the market, for one. For another, expansion-minded farmers are very aggressive but they are also selective -- they want to buy land but they don't want to burn up their buying power on lower-quality ground in case a better-quality piece of property comes available later.
Confirming what we've been reporting is this press release from Farmers National Company, the large farm management firm out of Omaha, Nebraska. In the release, Lee Vermeer AFM, ALC and vice president of real estate operations for the firm, says: "We are seeing value on the top quality ground at or even above the peaks we saw in 2008. In some cases, it is beyond that point, above the $7,000 per acre mark. The market for these properties is strong and, based on economic indicators, we project that to continue." He also added that properties that are only partially tillable or have lower-quality soils take longer to sell.
For the full press release, including more detailed regional reports, click here.
For a chart showing average prices for high quality versus low quality land by state, click here.
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