Farmland prices are rising sharply as a result of high yields and strong commodity prices, as well as other factors, according to R.D. Schrader, president of Schrader Real Estate and Auction Co., at the company's annual State of the Farmer’s Economy Update.
“A lot of things are falling into place to create one of the most positive land markets in recent years,” said Schrader. “The high yields and strong commodity prices are a powerful combination we haven’t seen in several years. In addition, many investors see the U.S. farmland market as a safe haven.”
Prices on high-quality farmland have risen by as much as 24 percent in some parts of the Midwest, Schrader said.
“We had auctions in 13 states in 2021, and competition was the strongest we’ve seen in seven or eight years,” said Schrader.
Steve Slonaker, a farm manager, appraiser and auction manager, pointed to factors creating challenges for those appraising farmland. "We're seeing factor
