Demand for Farmland is Forcing Higher Prices

By: Successful Farming Staff

Interest in buying agricultural land has grown since a coronavirus pandemic-induced slowdown blanketed the land market last spring. Farmers are feeling more financially secure as strong commodity prices arrived on top of large government payments in 2020. This is propelling farmers to bid more aggressively for additional land than has been the case during the past six years.

“Farmland sales prices are up 5 to 15 percent in the past six months with most of the increase coming since the first of the year,” said Randy Dickhut, senior vice president of real estate operations at Farmers National Company, in a press release distributed by the company. “Competitive bidding among interested buyers is really pushing land prices right now.”