While resilient farmland prices were the theme in 2023 and farmers were in the driver's seat in most sales, Jim Rothermich with Iowa Appraisal has recently noticed a couple changes in the market.
The ASFMRA’s specialized courses and seminars are tailored to empower appraisers in handling the complexities often encountered in rural and agricultural properties.
In their January 2024 land values report, Farmers National Company shared that the sharp increase in farmland values has slowed, and values are holding strong.
Steve Cubbage explores the true intentions behind foreign land ownership, and if it could be planting seeds of risk for our food security and national security.
In October 2023, Arkansas became the first state to ban foreign-owned farmland. More states look to adopt similar laws, but one policy expert says the issue is rooted in politics and warns of unintended consequences.
The latest barometer, which is based on an economic sentiment survey of 400 agricultural producers each month, recorded a reading of 114 – down 1 point compared to a month earlier.
In October, USDA said the average value of U.S. cropland (irrigated and nonirrigated) was $5,460 an acre in 2023--an increase of 8.1% from 2022. High-quality ground is selling for two to three times that.
Tom Askjem disappears under farmland, descends to depths of 13’-plus, and returns to the surface with treasure—bottles and glassware from agriculture’s past.
“We’re getting strong results. High interest rates and sub-$5 per bushel corn is not affecting land market conditions,” says Jim Rothermich from Iowa Appraisal.
North Dakota auction company announces new record-high land sale for cropland in the northeast corner of the state at $17,500 per acre, while in Iowa farmland sales are starting to cool off.
There’s a new record farmland sale on the books. After a 15-min. bidding war between two area farmers, the gavel fell at $34,800 per acre, which is $4,800 more than the previous record set in November 2022 in Iowa.
Doug Hensley from Hertz Real Estate answers the question, "How much do crop prices impact the decision-making process of farmland buyers" and shares how this year is shaping up to be a bit busier than anticipated.
“People sometimes refer to farmland as an investment in gold, plus a coupon,” Bruce Sherrick says. “You get a fairly low annual cash flow, fairly high long-term rates of return and tax advantages to the asset classes.”
“If I were picking both from a financial and an emotional perspective, the next place I could put a dollar, I still would favor farmland pretty highly,” Bruce Sherrick says.
John Phipps says there are signs that water is the new oil as water rights turn into water fights across the western U.S. He thinks it's a battle that could only heat up in the coming years.
Roughly 37.6 million acres of U.S. ag land is foreign owned, according to USDA. However, select purchases of U.S. land could come to an end following a Senate vote this week.
The House Select Committee on the Chinese Communist Party (CCP) introduced an act to prevent foreign adversaries from exploiting U.S. land near security sites, and would push a review of current ownership in these areas.
A mid-year report from Farmers National shows land values are increasing by single digits instead of the double digits common in 2021-22. But the company says it has a strong roster of listings headed into late summer.
Paul Schadegg, with Farmers National Company, shares his perspective on agricultural real estate demand, the impact of interest rates on the market and the outlook for land values later this year.
Under the bill, the USDA and the FDA would become members of CFIUS and their powers would be expanded to better consider ag needs when it decides if a purchase would create national security risks.
Despite the positive sentiment, local community bankers report concerns about lower commodity prices, the ‘big bank mess’ and another potential rate hike in June by the Fed.
Paul Schadegg, with Farmers National Company, shares his perspective on agricultural real estate demand, the impact of interest rates on the market and the outlook for land values later this year.
The rapid runup in land values caused farmland values to hit historic levels over the past two years. The dynamics are starting to shift, as input prices, interest rates and commodity prices are eating into outlooks.
The Office of Investment Security proposed a rule on Friday that would require foreign entities to garner U.S. government approval before they are able to purchase land within 100 miles of eight military bases.
Doug Hensley, President of Hertz Farm Management, says while farmland sales reached highs last year, they recently hit a plateau. Here are three market drivers Hensley encourages producers to consider.
The Missouri Senate on Wednesday backed a plan to amend the state's foreign land ownership threshold. The bill also includes a provision that would limit foreign countries from acquiring farmland in Missouri by Sept. 1.
The accelerated highs in 2022 don’t look to be hitting the brakes in the first quarter of 2023, according to Jim Rothermich, vice president of Iowa Appraisal.
This year marks the second-largest increase in the market value of agricultural land in Nebraska since 2014 and the highest non-inflation-adjusted statewide land value in the 45-year history of the survey.
Total land in farms decreased 1.9 million acres to 893,400,000 acres in 2022 versus 2021. Here is other noteworthy farmland data, courtesy of USDA’s Farms and Land in Farms 2022 Summary.
If cash rent leases are negotiated via auction, Jim Rothermich is seeing prices drawing double – even triple digit gains. In Illinois, prices are up 90% to 120% compared to the previous year.
Much ink and many pixels have been wasted, in my opinion, on rants about people other than U.S. farmers owning farmland. Surprisingly, critics are just as hard on wealthy Americans as foreigners.
