We have a new record price for farmland. On Oct. 27, around 116 acres of southeast Nebraska farmland sold for a record $27,400 per acre.
The sale in Richardson County, Neb., managed by Dream Dirt, included two tracts. The results are:
- Tract 1 with 116.07 acres: $27,400/acre
- Tract 2 with 163.07 acres: $14,400/acre
That totals around $5.5 million for the nearly 280 acres.
A local farmer bought the farm for corn and soybean production.
You can take a virtual tour of the farms via Dream Dirt:
This Nebraska sale follows a eye-popping sale in Iowa. Earlier this month a 55-acre far in Plymouth County, Iowa sold for $26,250 per acre. That means the total bill was $1.44 million.
You may also remember a previous noteworthy sale from Plymouth County this past summer. On May 27, a farm sold for $25,000 per acre.
With strong equity positions, farmers continue to buy up farmland, says Doug Hensley, president of Hertz Real Estate Services. They know a piece of ground comes up only every three or four generations.
“As operations become more strategic in the way that they think about their geography, people will maybe buy something, but if it’s a good farm, they can always unload it when something else comes up, that’s closer to them,” he says. “People are making very long-term decisions when it comes to buying these larger pieces of property.”
Currently, Hensley, says, farmers aren’t leveraging up in this market.
“But as things change in the future, people need to pay attention to where they’re at on the leverage side of things, and their lender is going to help them do that,” he says.
The last year has been “phenomenal in the land sales business,” according to Hensley.
“We had a lot of winds at our back, so to speak,” he says. “Stronger prices, low interest rates, good crops; by and large last year just kind of propelled this market forward. This summer we started to see some of those things shift, but going into fall, it’s still really busy. We’re still seeing an above average number of farms coming to the market this fall, so that’s great.”
Listen in as Hensley discusses the farmland market with Davis Michaelsen on AgriTalk:
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