Farmland owners who want to sell their acreage are holding back this fall, compared with this time last year — while land prices have declined slightly.
It's the second straight year farmland prices have been flat.
“I think people are holding their cards a little closer to their chest on what they’re willing to do land price-wise as a way to make sure they maximize their price if they are going to sell," said Dave Klein of First Mid Agricultural Services in Bloomington.
On an industry podcast, Klein said for the first half of the year, farmland sale prices were down 1-3% in Illinois and Iowa, depending on the quality of the soil and geography. That’s according to Iowa and Illinois Societies of Farm Managers and Rural Appraisers surveys of the last six months.
"This year, I think sellers are making decisions a little later. And we'll see more listings or private treaty negotiations where they are trying to control the price a little bit more," said Klein.
Traditionally, farmland prices have kept pace with the rate of inflation.
Klein said last year some potential sellers pushed to get their land to auction ahead of the election. This year, low commodities prices have impacted the market for land.
"Farmers are maybe pushed a little bit more on their margins and kind of wanting to see where their yields are going to be at as to whether or not they are going to be able to participate. So, I think that has been part of the challenge as well," said Klein.
In response, sellers are holding off for a time when there might be more competition.
