Source: Farmers National Co. news release
As winter winds down we turn our attention to springtime. Similarly, there is a winter land sales and auction season that picks up in mid-January and slows down by the end of March as farmers turn full attention to spring planting. There continues to be land auctions and sales during the spring months, but the number drops way off.
This winter, the land market existed within a long, cold winter in the middle of the country, on-going trade tariff issues, and continued lower commodity prices. Areas have also experienced devastating flooding or the threat of future flooding. It goes without saying that the past few months have not had a lot of bright spots for agriculture.
According to Farmers National Company agents and Sales Managers, buyers became more cautious as winter was winding down. Good quality land was still selling reasonably well while average quality farms were slower to sell. Location and quality were important price determining factors in most regions.
Generally, there was less urgency among buyers despite seeing some strong sales earlier in the winter. Sales Managers indicated that sales prices were fairly steady in light of the general trend of slowly softening land values.
With the rush to sell farmland prior to spring planting past, attention turns to on-going listings for sale. Landowner selling interest remains strong at Farmers National Company as the trend of having more land for sale than in the past continues within the company. Selling interest remains mostly from inheritors or estates who want to sell the ag land instead of holding it.
There are some quiet sales from financially stressed farmers happening behind the scenes and it is expected that the land market will see an increase in financially encouraged land sales come on the open market in the upcoming months.