“Lower grain and livestock prices are a major factor in the current measured decline in land values,” said Randy Dickhut, vice president of real estate operations for Farmers National Company.
OMAHA, Neb. (PRWEB) January 18, 2016
A softer agricultural land market will continue in 2016, with values for high quality land holding steadier, while lower quality land values decline.
Still, despite lower land values scattered across many regions, land values in general will remain historically high when compared to long-term trends, reports Farmers National Company, the nation’s leading farm and ranch real estate company.
“Lower grain and livestock prices are a major factor in the current measured decline in land values,” said Randy Dickhut, vice president of real estate operations for Farmers National Company. “As net farm income continues to fall from the 2013 peak, we expect to see this trend in many agricultural regions of the country.”
Price stabilization will carry over into 2016 for some regions as landowners hold on to the high-value land. The supply of land available for sale increased slightly during the last quarter of 2015, but has remained lower than normal. The demand for agricultural land has turned more cautious.
Farmers National Company statistics indicate positive long-term economic trends, even with the current softening of ag land values. The current land value trend may encourage new buyers to enter the market or existing investors to expand portfolios.
“As the land market experiences a gradual decline, values remain much higher than just five to seven years ago, due to the positive long-term demand for food and fiber,” Dickhut said.
Editor’s Note: Regional information can be inserted here from media center reports at: http://www.alberscommunications.com/media-center/farmers-national/january-2016-land-values/
Farmers National Company, an employee-owned company, is the nation’s leading agricultural landowner services company. Farmers National Company has sold over 3,765 farms and more than $2.75 billion of real estate during the last five years. The company currently manages more than 5,000 farms and ranches in 24 states comprising over 2 million acres. Additional services provided by the company include auctions, appraisals, insurance, consultation, oil and gas management, lake management, a national hunting lease program, forest resource management, and FNC Ag Stock. For more information on land listings in your region, visit the Farmers National Company website at http://www.FarmersNational.com.