Demand for farmland is rising fast
Good farmland is starting to bring big numbers once again in Illinois. Some areas in north-central Illinois are reporting $7,000 an acre and $5,000 in southern Illinois according to The Carmi Times of Carmi, Illinois. It has been a while since prices have risen but according to some, these steady prices are not sticking around long.
According to Lee Vermeer, AFM, vice president of real estate operation at Farmers National Company, buyers are now looking for investments that they can feel good about buying. "Investors stepped aside around November, but they have gotten back in the game," said Vermeer. "Everyone was trying to figure out the stock market and whether the economy had bottomed out. Some believe it has. Now that the uncertainty has subsided, buyers are looking for investments they can feel good about."
Roger Hayworth, of Farmers National Company, has seen a much higher interest in farmland now with interest even coming from foreign investors, "they (investors) want to get back in to the land buying business in an effort to hedge inflation."
What’s the outlook?
We find it interesting that foreign investors are showing interest in US farmland. Many of our past blogs have touched on foreign investors buying up farmland in other countries, primarily Africa. Now it looks like they are open to investing in US farmland.
We see the interest in farmland from foreign investors a sign that prices are going to rise. We think of now as a last call for buying farmland at these prices. We don’t want to be kicking ourselves when we see great returns in the future and think back on how we could have invested in farmland at one of the very few times in history that farmland prices were cheap.
- Colvin
According to Lee Vermeer, AFM, vice president of real estate operation at Farmers National Company, buyers are now looking for investments that they can feel good about buying. "Investors stepped aside around November, but they have gotten back in the game," said Vermeer. "Everyone was trying to figure out the stock market and whether the economy had bottomed out. Some believe it has. Now that the uncertainty has subsided, buyers are looking for investments they can feel good about."
Roger Hayworth, of Farmers National Company, has seen a much higher interest in farmland now with interest even coming from foreign investors, "they (investors) want to get back in to the land buying business in an effort to hedge inflation."
What’s the outlook?
We find it interesting that foreign investors are showing interest in US farmland. Many of our past blogs have touched on foreign investors buying up farmland in other countries, primarily Africa. Now it looks like they are open to investing in US farmland.
We see the interest in farmland from foreign investors a sign that prices are going to rise. We think of now as a last call for buying farmland at these prices. We don’t want to be kicking ourselves when we see great returns in the future and think back on how we could have invested in farmland at one of the very few times in history that farmland prices were cheap.
- Colvin
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