The stronger land prices of late 2021 continued higher through the first half of 2022.
After a calm period at the start of the year with prices steady, prices took another jump up as a result of the outbreak of war in Ukraine and ongoing inflation fears. Farmers saw higher commodity prices, and investors wanted a low-risk inflation hedging investment, which together propelled the competition for good cropland.
Prices for good quality cropland are up 20 percent in some areas since the first of the year.
“Good land that was selling for around $16,000 last fall sold for $19,000 to $21,500 per acre at company auctions in March,” according to Randy Dickhut of Farmers National Company.
The question of the moment is, will land prices go even higher? “With current land prices at heightened levels, most of the supporting factors remain in place at this time to keep values steady to firmer for the next six months,” says Dickhut.