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Ag land prices & availability not expected to be much different in 2019

An ag land marketing expert expects minor changes in farmland prices and availability in 2019. Randy Dickhut with Farmers National Company says, “We’re seeing a little pick-up from lenders about probably a few more properties, farms for sale this winter and into the next summer than there has been.”

Dickhut tells Brownfield buyers are a little slower on the bidding and not quite as aggressive, but most farms are still bringing in good prices. “Buyers are definitely more cautious, in general, in Iowa, Nebraska, Illinois, South Dakota, and North Dakota. We’ve had some good auctions that are still bringing the stronger price than you might think given the economics underlying farming right now.”

Dickhut says interest rates are still at historically low levels and the capital is available, although he says it remains challenging for beginning farmers to buy land. Dickhut says another area that might influence land prices will be interest rates and U.S. Treasury note yields, because when other investments yield well, fewer people invest in real estate, and that might lower land values.