As we look forward to a new year, we look for new beginnings and growth opportunities. Part of that, of course, is looking for more acres to buy or to rent. I've visited with quite a few farmers who are in the midst of purchasing farmland from existing landlords, family members, or even are considering bidding at one of our upcoming auctions. A lot aren't quite sure whether or not they should jump in. "Prices are just so high, maybe it would be better to wait."

My response? If it fits nicely into your existing operation and you can swing it, don't hesitate to pay the going rate or even a bit more if that's what it takes to get the deal done. There's little reason for me to see land prices correcting in a major way in the next year despite the headwinds facing agriculture.

The Haves and the Have Nots

We are in an environment where there are quite a few farms out there with major financial issues in front of them. Some have been self-inflicted, but others have been the byproduct of bad luck, perhaps:

• Multiple crop failures with bad insurance coverage
• Limited direct payments due to not meeting some criteria while others have received them
• A combination of the two

Then there is what I would tell you is the majority of folks in production agriculture: strong balance sheets, excellent equity through land, and incredibly strong borrowing positions, or frankly a lot of cash they don't know what to do with, or perhaps a combination of both. You couple that with the peripheral money, meaning the investors, and you can see why this land market might not correct like many think it should when looking at annual cash flow projections.

What to Expect This Spring

So what is the land market going to look like this spring? Early indications would point to a busier than normal spring in terms of acres sold. Part of that is the wealth transition taking place right now, which I've written about in the past. Another part of that is, sadly, I think there will be a few farmers who have to sell land to raise funds for working capital or to pay down debt in order to be viable to the banks.

My prediction is there will be a healthy appetite for all the land that does hit the block. There is just no give in sight and, as a matter of fact, like 2024, this land market firmed up post-harvest 2024. In other words, I think in quite a few instances if we sold the same farms that we sold in September of 2025 in November or December of 2025, they would have probably brought more. Part of this is due to:

• The sentiment change that occurred due to the framework of a trade deal being agreed upon by the U.S. and China
• The natural optimism that occurs post-harvest after a good-to-above-average year

My Advice for Buyers and Sellers

If you're looking to buy, don't wait too long. If you can swing it, take those opportunities to buy that land your family has been farming for decades, even if the selling family thinks it's worth a little more than you'd like to pay. You or your family will be glad you did one day soon, and the price will probably look cheap quicker than you think.

Don't believe me? Ask a farmer or rancher who's been around a while about the land they've bought over their career. It's always too much. "Wish'd I'd have bought more," anyone?

If you're a seller or perhaps your family is considering transitioning land you've owned for years, don't let the headwinds in agriculture keep you from taking your land to market if the timing is right for you. There is still fantastic demand for land regardless of type and quality.