Farmland values continue to hold steady despite tighter farm margins and more cautious buyers. Farmland market analyst Randy Dickhut says the limited number of farms available for sale has helped support land prices. “The mostly lower supply of land for sale over the past few years has definitely helped support land values,” Dickhut said. “There have been enough buyers, even though they might not have been as aggressive as crop incomes dropped.” Dickhut says demand remains strongest for quality farmland that fits an existing operation or provides an opportunity for investors to expand their holdings. Looking ahead, he says an increase in land sales could test the market as longtime landowners consider selling. “Ongoing succession, generational transfer, but also maybe some who have been considering selling will now say now’s the time to sell,” Dickhut said. “That supply is going to be very important to watch. Demand will continue.”
