Look for A Lot of Farmland to Change Hands in the Coming Months
At Steffes Group, we always say that the best time to have an auction is when you’re ready. And right now, it appears that a lot of people are ready and even eager to sell their farmland at auction.
Not only that, but it appears that a lot of people are ready and even eager to add to their holdings, according to Max Steffes.
Already, Steffes Group has more than 12,000 acres of land lined up for auctions in 2020, he noted. “The number of people who appear to be ready to sell is just amazing, and more are calling every day,” said Max.
“The really surprising thing is we haven’t even reached the period when most farmland auctions typically occur, which is between harvest and planting, so it’s going to be a busy fall,” said Max.
Recent farmland auctions have been encouraging. Representative Tim Meyer, in Iowa, reported that a September 11 auction in Des Moines County brought prices that may well have been records. “We had an auction where the most productive land brought $12,300 per acre, and even the lesser land went for $9,100,” Meyer said.
Max noted that while it’s early in the season, demand appears to be strong. “The market always favors better quality land, but we’ve had strong bidding and great sale prices on all types of land, including recreational land. Interest rates continue to be favorable,” he said.
Some recent land auctions have been for family transitions, such as liquidations for heirs who have pursued non-farm careers, said Max.
The high bidders in recent land auctions have been operators, who have been outbidding investors. “We’ve had little or no investor or 1031 activity,” said Meyer.
There’s still time for those seeking to sell in a Steffes Group auction in 2020, but it’s a good idea to call soon to get the desired date. You can locate the Steffes office near you at SteffesGroup.com.