Farmers National Company says the land sales rush that took place at the end of 2012 will likely mean an even tighter supply of land for sale in 2013—which could drive farmland values even higher.
The Omaha-based farm management and ag real estate firm says the demand for farmland remains strong as farmers, many of whom are in a good cash position, continue to look for opportunities to expand their operations.
Corby Fichter, who is with Farm Credit Services of America in southwest Iowa, agrees with that assessment.
“Just like everywhere else, (prices are) very strong, very healthy—probably a 20 to 25 percent bump from a year ago. The drought didn’t seem to faze land prices,” Fichter says.
“Values are all over in southwest Iowa, but we’ve had quite a few sales over $10,000 in this part of the country.”
Fichter says the climb in farmland values doesn’t appear to be slowing down.