Real Estate Market Insight
As combines roll into fields this fall, there is a renewed sense of optimism when looking at the real estate market. The current state of the ag land market is resilient, and the demand for high quality farmland remains strong in the face of higher interest rates and lower commodity prices.
However, the market will likely return to a more normal flow, evidenced in the slowdown of the appreciation rate of ag land, as well as the sales volume at Farmers National Company. Regional drought pressure across portions of the Corn Belt have also softened short-term demand for land.
Areas highly impacted by the drought have seen seasonal pressure with the lowest quality farms impacted the most, while demand for higher quality land has remained stable. The solid demand for ag properties from people interested in expanding their farm operations or investment opportunities seems to be driving the interest in high quality cropland.
As harvest gets fully underway, Farmers National Company typically sees a slowdown in auction sales since farmers are busy in the fields. Auction activity will ramp back up toward the end of October into early November. While pre-harvest sales were strong and many early yields above expectations, most farmers were surprised with the actual yield results considering the overall lack of rainfall received late in the summer.
Of course, anyone interested in knowing what their land is worth or has questions about whether the right time to sell is now, should reach out to a Farmers National Company agent. We also recommended people check out the auction calendar and watch an auction to better understand the approach at FarmersNational.com.