Government payments to farmers, strong commodity prices, low interest rates, limited inventory on the market and strong investor interest are all contributing to a relatively strong farmland market as the calendar turns to 2021. The marketplace did see a drastic slowdown in activity early on in the COVID-19 pandemic, but activity picked up and made up for it later in the year; one land broker says sales activity in October and November was about 50% higher than it was the same time in 2019. Also contributing to the land market’s strength is its stability; some new investors entered the market for the first time based on land’s stability and consistency of returns. Moving forward, low interest rates look to be the biggest driver of what’s expected to be a “dynamic” market in 2021. See more of what to expect.
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