Buyers plentiful as farmland market reaches historic levels
Buyers aren’t flinching as the farmland market reaches historic heights.
Eric Sarff, president of Illinois-based Murray Wise Associates, says price and volume keep churning higher.
“Both in Iowa and in Illinois we had a number of sales before Labor Day, which is typically not a common time to put your farm on the market. But as prices were strong, all those properties sold. And as we moved into October and now getting close to November, prices have remained strong (and) demand is still very strong. And I think we’ll see that continue through the end of the year.”
He tells Brownfield farmland sales are surpassing records set a decade earlier, with some tracts in Iowa going for over $20,000 an acre.
“At one point the supply was less (but) there’s more coming on the market now with people seeing what prices are doing. But that hasn’t stopped demand, and at this point demand is still outstripping supply which is keeping things strong.”
Sarff expects the farmland market to remain strong at least through next spring. He says there’s a range of buyers from farmers who are in a better financial position, individual investors looking to hedge against inflation, and larger institutional funds wanting to add to their portfolios.