Although land prices have moderated from the double-digit increases of the past few years, prices remain at historic highs and trends indicate that active sales will continue through the first quarter of 2014 in most regions. National Farmers Co. (NFC) set a new sales record in 2013 of $750 million – up from $640 million in 2012. Price per acre for high quality land range from $3,500 – $13,000 per acre nationwide with the highest prices being realized in Illinois, Indiana, and Nebraska. Values in the Upper Midwest remain strong reaching $10,000 per acre. Despite lower commodity prices, lower input costs have helped keep farms profitable and have kept farmers interested in premium land for expansion. Prices in Iowa, Minnesota and South Dakota have leveled off, and moving into 2014 land values will likely be affected by any changes to the ethanol mandate. As Texas recovers from drought conditions, land values are expected to increase 5%-7%, but in the Northern Region of North Dakota and western Minnesota a 40% drop in sugar beets has cooled the land market. After a recent surge in activity, land values in the East Central Region of Illinois, Indiana and Ohio remain steady as supplies are limited and demand in the area is strong. Activity in the first quarter of 2014 should be high but will slow as the year progresses. In the High Plains values have tapered off by 8%-10% however recovery from the drought will stave off any further decline. Farmers remain the main buyers of farmland as investors appear to continue to be more guarded.
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