Mark Twain once quipped, “Buy land, they’re not making it anymore.” Investors are hot into the farmland market that offers a low risk investment and promises a potential high reward. The average age of the farmer is 58 years old and as they age out, farmland will become available for investors to cash in on. We’ve put together 4 farmland investment strategies being practiced in today’s market.
Land auctions exceeded 200 sales in the last quarter of 2017 compared to merely 120 in quarter 3, with especially more land that is not necessarily higher-quality tillable farmland. This bump in farmland supply has resulted in a minor dip in the land prices over the past few months especially for lower quality land, however, the prices for higher quality tillable grounds are fairly stable and represent a modest increase over average sale price of $8,625 in 2016 quarter 4.
Land Auctions picked up the last month of quarter 3 with a good amount of land coming up for auction. September tested with market with more land being auctioned than any month in 2017. The quarter 3 data indicates a very stable market. The data suggests that quarter 3 is down slightly from quarter 2 by -0.4% on 85% tillable farms. The data suggests the market has gotten stronger throughout the year and even with more land being auctioned, the market appears to be very strong.