Will More Farmland Acres Hit the Market this Fall?
While farmland auctions happen every month of the year, but the most happen in the fall or early winter. Normally auctions slow during spring planting and the early summer.
What will be the trend this year?
“The number of sales and amount of land sold from now until the close of 2022 will probably not equal the very active land market experienced in the last few months of 2021,” says Randy Dickhut, senior vice president of real estate operations for Farmers National Company. “Quite a bit of additional selling then was prompted by anticipated tax law changes coming in the following year which would have raised taxes and lowered the net received from a sale or estate plan.”
As such, Dickhut expects sales activity to be more than likely exceed what was seen during the slower land market years of 2015 to 2020.
Listen to Randy Dickhut talk land values with Chip Flory and Davis Michaelson on AgriTalk:
Why will more acres hit the market? The No. 1 reason is the record-high farmland market.
“High prices normally bring out more sellers,” he says. “Another factor influencing when to sell for landowners is the huge amount of uncertainty in several factors that influence land values.”
Those include:
- Interest rates (how high and how soon will rates move up)
- Weather
- 2022 yields
- Farm income
“A number of additional landowners are making the decision to sell in 2022,” Dickhut says. “This is increasing the sale activity outlook for the next few months. The demand or buying side of the equation has been holding up well with farmer and investor interest remaining strong, but time will tell if factors in the ag and general economy will change the demand for land.”
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