Demand for productive ag land nationwide caused a jump in real estate values for farmland, cropland and pastureland. Low interest rates and high commodity prices helped. Farmers National Company Senior Vice President of Estate Operations Randy Dickhut says there’s a number of reasons why the land market is so competitive. “There’s a lower supply of land for sale ever since the peak in 2013. Probably the biggest factor in the short-term is the good, overall net farm income producers had from 2020. That brought more buyer optimism.” According to Senior Vice President of Sales and Marketing Matt Gunderson, there’s also a jump in land rental prices. “In the spring, we thought we could see a 15 to 30 percent increase across the 29 states we monitor. Much of that evaporated with higher input prices. We still see isolated areas with an increase of up to 10 percent increase in rents.”
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