September 19, 2023

Land Rush: What are farmland sales like at the end of 2021 | New

With Dickinson County surrounded by farmland, residents got used to driving near crops, livestock and barns, while realtors got used to land sales and auctions with the evolution of the industry. agricultural.

According to the Dickinson County Deeds Register office, the county recorded 32 land sales, which included both dry land and grassland. The average cost of drylands was $ 1,950 and that of prairies was $ 2,140, ​​rounded to the nearest $ 10. The county saw no sales of irrigated land, so in the absence of irrigated land sales, an increase of $ 190 was applied to grassland sales to arrive at a market value of $ 2,330 for the land. irrigated for 2022. All values ​​reflect county farmland in 2022. Market table.

Owner and broker of Horizon Farm and Ranch Realty LLC, Ray Swearingen and his agents use their 50 years of collective land selling experience to guide sellers and buyers through the process. For 2021, he saw a shift in land sales, which has reversed prices for the past seven years.

“18 months ago we were at a seven-year low in land values ​​from our 2014 high,” Swearingen said.

He said land prices had increased in recent months.

“Overall, land prices have seen a dramatic increase over the past nine months, with all areas of farmland, ranches and recreation grounds hitting or exceeding historic highs in the markets,” Swearingen said. .

While COVID has created problems for many industries to move forward, realtors have seen grants along with the help of other elements make the land cheaper.

“The main contributors to the bull market are historically low interest rates, a strong rally in commodity prices across the board, government subsidies linked to Covid, and phenomenal stock market returns,” Swearingen said.

The changes have allowed many farming and ranching families to recover after a few difficult years in the agriculture industry.

“Low interest rates and higher commodity prices have given our farmers and ranchers a chance to recover from the last difficult years in agriculture and to consider the possibility of expanding their operations,” said Swearingen. “The COVID-related subsidies have increased opportunities, not only for those hard-working people who have suffered as much as anyone during the past 18 months of COVID uncertainty, but for buying investors who are closely examining the return on investment. Add to that the record trading volume in the stock market which has left buying investors with the cash to invest, many looking for a safe and tangible investment alternative to park their money.

All of this contributes to the current price of the land.

“Put one of these factors together and you have a trifecta that’s responsible for our current increase in land values,” Swearingen said. “Whether you’re talking about farmland, ranches, or recreational land, there are aggressive buyers looking to add to their operating and investment portfolio. “

With buyers wanting land and sellers wanting money, brokers needed to find a better way to bring land sales to the public during attendance restrictions.

“Land auctions have become difficult to navigate with attendance restrictions,” Swearingen said. “We adapted and moved to a live venue combined with a simulcast online auction platform to securely meet the needs of our sellers and buyers. “