Land sales finished strong in 2013, spurred by good farmer demand for additional land, according to Farmers National Co., the nation?s leading farm and ranch real estate company.
Nationally, FNC is reporting record real estate sales of $750 million for 2013, compared to $640 million in 2012.
Activity during the first half of 2013 slowed slightly because of a surge in sales at the end of 2012 prompted by tax-law changes.
However, sales levels turned upward during the year and finished strong, according to Randy Dickhut, FNC vice president of real estate operations. He said trends indicate an active pace will continue through the first half of 2014 for most regions.
While land prices have stabilized compared to the double-digit price increases seen in recent years, levels are at historical highs.
Prices per acre for high-quality land range nationwide from $3,500 to as high as $12,000 to $13,000 per acre in areas of Indiana, Illinois, Iowa and Nebraska. Values in the upper Midwest are strong, with sales reaching $10,000 per acre.
In Kansas and Okla?homa, The land market for high-quality cropland remains strong, but values have tapered off slightly with reductions of 8 to 10 percent in some cases, according to Brock Thurman, FNC area vice president based in Kiowa.
?Drought challenges have subsided, which is helping to stabilize any further reduction in values,? Thurman said. ?Trends in the south central region are mirroring national trends overall, with comparable activity.?
Looking into 2014 for this region, Thurman predicts cropland will remain steady or see potential reductions of 10 percent in value.
Current auction levels remain extremely strong and are forecasted to stay at a similar level into early 2014.
Prices for irrigated high-quality cropland in the area are variable, but range between $4,000 and $6,000 per acre, while the range for non-irrigated land is $3,000 to $6,000.
Farmers continue to be the primary land buyers. Dickhut reports that investor interest in land has been more guarded, as many are not willing to pay high prices without a guaranteed strong return.
Recent success in the stock market is generating interest in alternative investments, pushing outside investors to choices besides land.
?The market for farmland overall remains strong, particularly for quality land even though buyers are getting more cautious,? Dick?hut said. ?The impact of changes in commodity prices, expenses, and interest rates will all play into year-end results.?
