Is Now the Right Time to Buy Farmland? A Local Expert Weighs In

As we look forward to a new year, many of us are seeking new beginnings and growth opportunities. For farmers in our community, that often means searching for more acres to buy or rent.

I've visited with quite a few local farmers recently who are working to purchase farmland from existing landlords or family members, or are considering bidding at one of our upcoming auctions. Many aren't quite sure whether they should jump in. "Prices are just so high. Maybe it would be better to wait," they tell me.

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.

Here's why: I see little reason for land prices to correct significantly in the coming year, despite the headwinds facing agriculture.

**The Tale of Two Farm Economies**

We're in an environment where some farms face major financial challenges. Some difficulties have been self-inflicted, while others stem from bad luck — perhaps multiple crop failures with inadequate insurance coverage, or limited direct payments due to missed criteria. Sometimes it's a combination of both.

However, the majority of folks in production agriculture are sitting on strong balance sheets, excellent equity through land ownership, and incredibly strong borrowing positions. Frankly, many have cash they don't know what to do with.

Couple that with peripheral money from outside investors, and you can see why this land market won't correct itself the way some expect based on annual cash-flow projections alone.

**What to Expect This Spring**

Early indications point to a busier-than-normal spring in terms of acres sold. Part of this stems from the generational wealth transition currently underway. Sadly, another factor is that some farmers will need to sell land to raise working capital or pay down debt to remain viable with their lenders.

My prediction: there will be a healthy appetite for land that hits the block. Like 2024, there's simply no give in sight. In fact, the land market firmed up after harvest last year. In many instances, farms sold in September would have fetched higher prices had they sold in November or December.

This strengthening reflects both the sentiment change following the U.S.-China trade deal framework and the natural optimism that follows a good harvest year.

**My Advice for Buyers and Sellers**

If you're looking to buy, don't wait too long. If you can swing it, seize the opportunity to purchase 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'll be glad you did, and the price will probably look cheap sooner than you think. Don't believe me? Ask any farmer or rancher who's been around a while about the land they've purchased over their career. It always felt like too much at the time. "Wish I'd have bought more" is the refrain I hear most often.

If you're a seller, or your family is considering transitioning land you've owned for years, don't let agriculture's current headwinds keep you from going to market if the timing is right for you. Demand for quality farmland remains strong, regardless of type or quality.