IARN — A Farmers National Company official says buyers are looking for farms to purchase, whether it be farmers or investors.
Randy Dickhut, Senior Vice President of Real Estate Operations for Farmers National Company, says his business is getting more calls than ever from interested buyers looking for farms of all types. He says it’s a seller’s market right now.
“When we’re looking at starting in the fall time period on through the winter, so far, coming up on spring as the typical farmland selling season, we’ve seen more optimism from buyers, who’ve become more aggressive, bidding higher to purchase that good cropland when it comes up for sale,” said Dickhut. “And individual investors are getting interested in owning farmland, and then the institutional funds that continue to be in the farmland market.”
Dickhut adds there is an average to less amount of farms for sale right now which is helping create a seller’s market for farmland.
“There’s less supply of farmland, especially the good cropland for sale than might be normal,” said Dickhut. “It’s not a big drop, but there is still a little less on the market. So, supply and demand, if you have a little less for sale and more demand, it usually boosts the price up, along with the interest rates, the better optimism in the farm economy with better commodity prices and so forth, so that creates a sellers’ market. If a landowner has some good cropland for sale and there’s good demand, it will bring a good price.”
Dickhut says Farmers National Company “has also been getting more calls from non-operating land owners who are considering the sale of their farm or ranch,” and that “some put a hold on thoughts of selling and sat tight during Covid-19 waiting to see what transpired.”
Story courtesy of the Iowa Agribusiness Radio Network
Image source: Wikimedia Commons
