Selective buyers vie for high quality farmland
Prices in these regions are ranging from $4,000 to $12,000 per acre for high quality tillable acres, with location, soils and topography dictating price.
Illinois, Indiana and Ohio
Quality farmland in the East Central region continues to see moderate to steady land values, with increases near four percent over the past six months, according to Roger Hayworth, area sales manager for Farmers National Company in Illinois, Indiana, Ohio, Michigan, eastern Kentucky, and eastern Missouri.
“Low supply, prompted by strong sales activity late in 2012, is causing prices to rise as demand has stayed strong into this year,” said Hayworth. “When a unit of land is placed on the market, it is sought after with aggression – particularly high quality parcels.”
Both investors and farmer-owners are buying land, but perhaps a bit more cautiously, according to Hayworth. Several positive income years have put farmers in a stronger position than years past to be able to increase the size or their operations. “Many continue to evaluate their personal and business situations before buying, but are making the move when an opportunity arises.”
Despite fewer sales, Hayworth says he is seeing larger parcels of land being sold in individual transactions as we move further into 2013..
Top prices in the region can be seen in Illinois at $12,500 per acre on average for high quality land. These levels are followed by Indiana showing values up to $10,500 per acre, and Ohio, which has reached $8,200 per acre.
Arkansas, Mississippi and Tennessee
Activity in the Mid-South Region remains brisk, fueled by low supply and continued high demand. Once properties hit the market, they are selling briskly.
“Prices are still going up and inventory continues to be tight,” said Keith Morris, area sales manager for Farmers National Company in Tennessee, Mississippi, Arkansas, Alabama, western Kentucky and Louisiana. “Buyers, both investors and farmers, are looking for good farms and don't mind paying a little more for quality farmland.”
Prices for top farmland are averaging $4,250 per acre in Arkansas, $3,800 per acre inTennessee and $4,250 per acre in Mississippi.