High commodity prices will combine with strong demand to hold farmland values at near-record levels in 2023, said Farmers National Co., a farm real estate and management company, on Wednesday. “Our anticipation is these values will remain strong coming into the new year, with continued strength in the ag economy, although we may see less and less of the record sales,” said senior vice president Paul Schadegg.
“There are simply more buyers willing to bid on the limited amount of farmland coming to the market,” said Schadegg in listing the factors for robust farmland prices in 2022 and continuing into the new year. Strong farmland prices were justified by the expected returns from high commodity prices and elevated land rental rates. “Commodity markets will continue to be the main driver in land value. When coupled with the supply/demand scenario, the outlook for continued strong land values remains strong moving into 2023.”
Farmers National, based in Omaha, sold a record $766 million worth of farmland assets in 2022, $16 million more than the mark set in 2021. Local farmers were the buyers in three of every four transactions, it said.