Farmland Sales Hold Steady, But Not Record, Pace in 2023

ST. CLOUD (WJON News) - A report from Farmer’s National Company finds the market for agricultural land has seen a dip in both sales volume and the amount of land being offered for sale.

Darwin Thue is a farm manager and land estate broker based in Clearwater. He says land sales are still strong, but not at the record pace seen in the past.

I think (there are) two factors that have changed the land market in the first half of 2023. Interest rates have increased, obviously, and then the amount of land available on the market has slowed.

Thue says there will always be an appetite for farmland, both from buyers looking for investment opportunities and producers looking to expand their operation.

I think they're going to be stable. I think good land is still highly desirable by both farmers and investors. I don't think we're going to see the big increases in land values that have sold. I think the level of farmland sales will continue at the same levels they have been, I just don't think people are going the huge increases that they've seen year after year.

Company analysts say the sales volume in the first half of 2023 continues to exceed the five-year average, but are off the record pace set in 2021 and 2022.

Thue expects commodity prices will continue to drive both sales volume and land value moving forward.