Farmland prices for the month of April 2020 were relatively stable overall. We had 6 auctions consisting of over 1,800 acres in Wisconsin, Iowa, and Minnesota as well as many listed properties and off-market transactions take place.
The market showed us a few things to note this month as far as the current market pricing/situation update. First, high-quality ground was overall hardly affected. The top end outliers did not happen, however the average stayed right about the same. Medium quality land was down 5-10% and the low-quality ground is what brought the group average down the most. Land that was either very light, wet or flooding, and poor quality overall from a hunting or tillable perspective had less interest and in turn achieved less of a price. Second, we saw more transactions than we originally thought we would. Buyers with 1031 exchanges were higher than usual, stock market exits were higher and buyers with low interest rate lock intentions were all a positive to the market. Third, we saw more people than ever willing to bid online and 2-3 times the registered bidders for auctions. People believe in land and the stability it offers more than ever and are seeing it as a safe haven that can be enjoyed on top of the financial benefits. Last, we had an increase in sign and directional calls from buyers driving around looking for land instead of on the Internet. There was an increase in number of rural property showings and land interest overall more than we have seen in the last 4 months.
There are many unfortunate things happening to agriculture currently. However, I was reminded by a man far older and more experienced than myself this week that when interest is affordable, markets are down, and things don’t look so good; there are usually good times, higher rents and new record high prices coming down the road. If you can lock in a good deal today you might be happy you did a few years from now.
If you or someone you know is interested in land as an investment, a nice place to get out of town to spend time with friends and family, or a home in the country give one of our agents a call today. We have a large list of current listings with motivated sellers.
Enjoy this wonderful “normal so far” spring weather!