11516 Nicholas St., Suite 100
Omaha, NE 68154
Phone: (402) 496-FARM (3276)
www.FarmersNational.com
Serving America’s Landowners since 1929
June 27, 2016
For More Information Contact:
Kristin Danley-Greiner
On behalf of Farmers National Company
1-888-296-2411 ext. 4968
[email protected]
Land Market Equilibrium
Where are Land Values Heading?
OMAHA, Neb. --- Land price movement has been in the forefront for farmers, landowners, lenders and
land brokers for a decade now during this historic run-up in land values. Overall average values of crop
ground and grasslands have slipped from the highs of several years ago, but are still historically strong,
according to Farmers National Company, the nation’s leading farm and ranch real estate company.
But where are land values heading?
“The agricultural land market is in a time of equilibrium as the supply of land for sale is fairly in balance
with the demand to buy land,” said Randy Dickhut, senior vice president of real estate operations for
Farmers National Company. “The supply of ag land for sale is generally on the low side of normal as
some landowners are deciding whether to sell now or keep their land. Demand to buy land has trended
lower over the past few years as buyers are being more cautious.”
According to a survey of Farmers National Company agents, farmers and ranchers, who were the
predominant purchasers of land that came on the market during the past decade, are not being as
aggressive now when compared to recent years. Farm and ranch profits are down and lenders are being
more careful in what they will lend on land purchases. Furthermore, investor interest in farm and ranch
land declined as land values moved higher during the last four to five years and the return on investment
slipped. But individual and fund investors are moving back into the land market as land prices soften.
Farmers National Company reports that, overall, demand for good land remains solid, but interest in
lower quality crop ground and grassland is less in most areas.
“With the supply of land for sale being on the low side, the land market is stable at this time. But, factors
affecting land values can surface over the next few years to move the land market in either direction,”
Dickhut said.
“If the supply of land for sale increases due to lower crop and livestock profits or landowners decide to
sell now for various reasons, the land market equilibrium could change, pressuring land prices lower.
Demand to buy land by farmers and ranchers will change with profitability forecasts,” Dickhut
continued.” Changing macroeconomic factors affecting interest rates and alternative investments could
change the demand for land either up or down. Besides economic considerations, there is always a
reason to sell or buy that may end up being more important than where land values are at during any
given time.”
Farmers National Company experts noted that during this time of relative market equilibrium, it is
advisable to have a professional assist in the buying and selling process.
“If selling today, assessing the local land market and knowing how to most effectively market and sell
each farm or ranch is the key to achieving the best price,” Dickhut said. “If buying land, knowing what
land to buy for the best return and value takes diligence and expertise. No matter if land values move
higher or lower over the next few years, it is always important to have a professional with expertise and
knowledge working for you.”
Editor’s Note: Regional information can be inserted here from media center reports at:
http://albr.co/fnc-jun-2016
Farmers National Company, an employee-owned company, is the nation’s leading agricultural
landowner services company. Farmers National Company has sold over 3,765 farms and more than
$2.75 billion of real estate during the last five years. The company currently manages more than 5,000
farms and ranches in 26 states comprising over 2 million acres. Additional services provided by the
company include auctions, appraisals, insurance, consultation, oil and gas management, lake
management, a national hunting lease program, forest resource management, and FNC Ag Stock. For
more information on land listings in your region, visit the Farmers National Company website at
www.FarmersNational.com.