Why 2021 Is Turning Out to Be a Great Year to Sell Farmland
Derived from our knowledge and expertise, we know 2021 is a great year to sell farmland. As was predicted in the Steffes Group 2020 Spring Auction Catalog, prices on farmland remained rock solid throughout 2020 and the company continues to see robust demand and strength in the new year. Demand, interest, and bidder registrations skyrocketed on farmland auctions starting in August 2020. This trend has continued, with many more registered bidders than anticipated, and was reflected during a recent auction of 732± acres in Walsh County, ND which saw 44 registered bidders.
The Three Industry Indicators We Rely On
Prices attained at auction sales have reflected this uptick in demand with some tracts of farmland collecting at or well above record prices “Commodity prices, interest rates, and local yields are the three leading indicators we believe most closely influences farmland and other farm assets. All three have been favorable lately.” says Max Steffes, Site Leader.
Late 2020 Brought Us a Fourth Indicator
However, an unpredicted fourth factor emerged late in 2020. Many producers and agribusinesses took advantage of the Paycheck Protection Program in addition to the Coronavirus Food Assistance Program (CFAP). USDA now reports government payments will account for 35% of net cash farm income in 2020. This fourth factor, paired with an unexpected rally in commodity prices, record low interest rates, and average to above-average yields throughout the Midwest, propelled farmland auctions into a strong fall market which will continue into 2021.
“For investors, land is a safe investment and wonderful hedge against inflation. For farmers, it is safe, familiar, and part of their livelihood. It is sacred and, when it becomes available, they are taking advantage of a once-in-a-lifetime opportunity to purchase” says Max. So far in 2021, Steffes Group has sold over 2,000 acres of farmland at auction and have multiple buying opportunities in upcoming months.
To view upcoming land and real estate auctions, visit https://SteffesGroup.com/Auction/RealEstate or to contact a Steffes representative near you and get your auction on the calendar, visit https://SteffesGroup.com/Home/Contact.