As the nation adjusts to a new administration and a changing regulatory environment, many producers might be sizing up their asset/investment portfolios and operating inputs/expenses and trying to determine where to tighten their belts and where to to focus on building or maintaining.
Mitigating risk while trying to expand and grow your agricultural enterprise has always been the challenge and the reward of being in production agriculture. When considering our current inventory of land, livestock, equipment, feed and off-farm income, it may be time to give a hard look at where to cut and where to grow in 2021 in order to survive and thrive in tumultuous times.
Pierre, SD, USA / DRGNews
Jan 27, 2021 10:44 AM
Buying interest in farmland has been stable for the past several years. However, the level of interest grew starting last summer in the eastern Corn Belt.
Farmers National Company reports prices for top-quality cropland sold at auctions and listings increased significantly since before harvest. Demand for good farmland has improved, and good cropland is selling for prices last seen in 2013. Government payments, low-interest rates, and rising grain prices sustained farmers’ interest in buying land, especially in the fall. The boost in net farm income provided the financial comfort for farmers to step into the land market.
Maksymowicz/iStock/Getty Images Farmers National Company vice president predicts land prices will continue to be firm in 2021, barring unexpected market challenges.
Jan 07, 2021
Demand, low interest rates and a limited availability of land for sale supported land prices in October and November 2020.
“Farmers National Company had auction sales in several states during this time where land sold near levels last seen in 2012, said Randy Dickhut, senior vice president of real estate operations at Farmers National Company. In specific instances, prices for good quality cropland in the heart of the Midwest are up hundreds to thousands of dollars per acre more than anticipated.