Record-setting activity ebbs as real estate market slows down

The agriculture real estate market entered a period of de-escalation beginning in the fourth quarter of 2022, reports Farmers National Company. The market experienced a reduction in both sales volume and value growth since that time as interest rates increased and inflation pressures became more apparent.

That trend has continued into the first half of 2023, with fewer properties being offered for sale and market values that, while still strong, are dramatically off the pace seen in the first half of 2022.

Results from the Federal Reserve District Surveys reflect this trend between the third and fourth quarter of 2022 and now continuing into the first half of 2023. Value growth is still positive across the Midwest, but increases are now in the single digits instead of the double digits seen in 2021 and 2022.

Farm operators remain the largest group of buyers through Farmers National Company, accounting for nearly 80 percent of all land sale transactions.

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