Upswing in U.S. Farmland Demand Continues at Record Pace Experts See No Signs of Bubble in Immediate Future

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Demand for U.S. farmland is dramatically higher than a year ago, and everyone is watching closely for indicators of any market correction. Rising grain prices continue to make land a profitable investment.

Demand for U.S. farmland is dramatically higher than a year ago, and everyone is watching closely for indicators of any market correction. Rising grain prices continue to make land a profitable investment. As a result, landowners are using profits to acquire land, and investors continue to take notice looking for opportunities.

“While 75 to 85 percent of land buyers continue to be farmers, interest among outside investors has risen,” said Lee Vermeer, AFM, vice president of real estate operations at Farmers National Company. “Despite the robust demand driving sales activity levels, reports show that lenders are taking a relatively conservative approach to lending. Strong profits the past few years have provided cash for farmer buyers, while investors are taking cash from other sources to rebalance portfolios.”

While commodity prices are keeping land values rising, supply of available land for sale is down 30 percent from historical numbers, according to Vermeer. High grain profits and high farm income are tied to the demand for farmland, driving prices up. Low interest rates are also working to keep prices increasing.

“The total crop from last year wasn’t what was projected,” said Vermeer. “The result was a limited supply which resulted in increased prices. We are looking ahead to continued strong commodity prices due to late spring planting. Early summer floods are reducing crop acres.”

Editor’s Note: Regional information can be inserted here from reports attached.

For more information on land listings in your region, visit the Farmers National Company website at http://www.FarmersNational.com.

Farmers National Company, an employee-owned company, is the nation’s leading agricultural real estate and farm and ranch management company. The company has sold over 2,600 farms and more than $1.25 billion of real estate during the last four years. Farmers National Company currently manages more than 5,000 farms in 24 states. Additional services provided by the company include appraisals, insurance, consultation services, oil and gas management, lake management and a national hunting lease program.

11516 Nicholas St. Ste. 100
Box 542016
Omaha, NE 68154-8016
Ph: (402) 496-FARM (3276)
http://www.FarmersNational.com
Serving America’s Landowners since 1929    

For More Information Contact:
Joni Williams
Albers Communications Group
On behalf of Farmers National Company
1-888-296-2411, ext. 8
joni(at)alberscommunications(dot)com

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Joni Williams
Albers Communications Group
(888) 296-2411 8
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