If you’ve got farmland to sell, chances are you’ll get a good price this year, says land management company Farmers National.
Increased demand for top quality land is driving up sales prices in Tennessee and the rest of the Mid South region, the company said in a recent report on land values.
“We have seen prices increase up to 30 percent on top land in some areas with no sign of a slow-down,” Keith Morris, an area sales manager for Farmers National Co., said in a news release.
“Product is getting harder to find, driving some buyers to look at poorer quality farms, with plans of upgrading them,” said Morris, who covers Tennessee, Mississippi, Arkansas, Alabama, western Kentucky, Louisiana, and southern Missouri.
Top Tennessee farmland is selling for an average of $3,500 per acre,Farmers National says.
The trend is the same across the country — increased demand is bringing higher sales prices.
“What surprises us is the rate of increase over the last 12 months,” Lee Vermeer, AFM, vice president of real estate operations at Farmers National, said in a news release. “Values are up 20 to 25 percent, compared to rises of five to 10 percent in 2010. We are looking for 2012 to be another profitable year for those selling land.”
An optimistic outlook, but as the economy improves the land market will only grow stronger.
Click here for Farmers National report.