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The Fall Land Market
Agricultural land sales usually pick up during fall and winter. But this year, there is more uncertainty in the minds of landowners. Unplanted crop fields, trade issues and other agricultural issues are bringing up a lot of questions and concerns about buying and selling land. Is this a good time?
Randy Dickhut is the senior vice president of real estate operations with Farmer’s National Company. He says nobody has all the answers, but good quality crop land, no matter where it is, is selling well.
"That’s evidenced by some of the Federal Reserve district reports and other reports you see that land values year-over-year are fairly steady give or take a few percentage points plus or minus from prices last year," says Dickhut. "The lower quality though, on the other hand, it’s harder to farm, not as productive, it’s got some problems, that’s harder to sell."
Dickhut says farmers that had flooded land and were affected by the wet planting season are asking if this will hurt the sale price if they sell this year. It depends on the severity of the flooding and the damage.
"If it flooded and the water receded and was even able to plant this year, I don’t think it will hurt the value of it in the longer run very much because people know that it’s got some of that potential to periodically flood but it doesn’t usually get damaged," he says. "Now, in the areas where it was flooded and it was eroded or gullies cut or a lot of silt on it, that’s definitely going to put a question mark in future buyer’s minds."