To read the headlines, you might get the idea that farmland prices are teetering on a ledge, poised for a big fall. The common script is that weak commodity prices will pull land prices down with them. So why did 160 acres of farmland in Champaign County, Illinois, sell on Nov. 18 for $13,156 per acre?
At first, it’s tempting to write it off as an outlier — the sort of thing that happens when a couple of adjacent farmers really want the same field. But it isn’t that simple, because in the same auction, another 160 acres went for $11,406 per acre, to an investor. Taken as a whole, including the lesser quality land, we sold 556 acres for $5.98 million that day.
If you read the various predictions we’ve been seeing — including some of mine — you know this isn’t supposed to be happening. But as I talk with investors and farmers alike who are seeking to buy more land, I’ve had to admit that they’re right: This is a great buying opportunity. And these are successful operators and investors with cash to spend, just looking for the right land.
What are they seeing that others aren’t?
Read the entire article: http://www.murraywiseassociates.com/Blog/quit-fretting-over-this-years-commodity-prices-this-is-a-great-time-to-buy-farmland
