LITTLE ROCK, Ark. (RFD NEWS) — Limited farmland inventory and strong cattle economics are influencing agricultural property values, with some Central Plains markets seeing significant gains.
Jeramy Stephens with National Land Realty joined us on Friday’s Market Day Report with a look at current farmland trends in the region and what landowners and buyers should watch heading into next year.
In his interview with RFD News. Stephens said land values in Kansas, Nebraska, and South Dakota have surged, with limited inventory a major factor.
“It’s just lack of inventory,” Stephens said.
He said demand for land to support cattle has also increased as cattle prices have risen, with those economics carrying over into row-crop markets.
However, he said the lack of available property is not limited to the Central Plains.
“It’s across the country where inventory’s poor,” he said.
Stephens said landowners holding onto properties are contributing to the limited inventory.
He said family-held properties have stayed off the market as owners weigh uncertainty around interest rates, inflation, and the broader market.
The inventory shortage, however, has been developing for longer than the recent changes in interest rates and inflation.
Cattle Economics Influence Land Values
Stephens said cattle producers looking to increase their herds need additional land to support those animals.
“Everybody’s trying to, with prices and cattle, increase the herd,” he said. “In some places, they’ve got to have a place to put them.”
That demand can push buyers to pay more for property that can support additional cattle.
National Market Holds Stable with Opportunities for Both Buyers & Sellers
Stephens said farmland markets remain fairly stable: recent Iowa and Illinois sales and auctions show steady prices, while the Delta market is mostly flat with little appreciation.
Looking ahead, Stephens expects the market to remain fairly flat in the short term.
“Land is one of the last things to make a move, no matter what happens,” he said.
Despite limited inventory, Stephens said properties are still available for buyers and sellers.
“There are opportunities out there,” he said.
Stephens said there is not necessarily a single right time to buy or sell farmland. Instead, buyers and sellers should focus on finding opportunities that fit their individual needs.
Land Auctions Vary by Region
Stephens said auction effectiveness can vary significantly by region.
“Some areas auctions do extremely well. Some other areas they don’t do as well,” he said.
He expects more clarity as the fall progresses, particularly as producers evaluate the current crop year and make decisions about the year ahead.
Stephens said auction activity could increase as those decisions take shape, but he expects the market to remain regional.
LEARN MORE: nationalland.com
