Aerial Corn Soybeans SunsetAt the start of March, a farmland sales record was set in Cass County, N.D., of $11,160 per acre. At the end of March, another record was set near Ada, Minn., in the central Red River Valley for $11,200 per acre. Iowa continues to see acres selling between $15,000 and $25,000 each. Yet, net farm income is forecasted to be down significantly this year.

Beyond the obvious leading indicators of commodity prices, interest rates and yields, factors driving land pricing include:

  • COVID cash. Many well-heeled farmers still value good land above most worldly possessions. Net farm income ballooned after the pandemic, and some cash wasn’t spent.
  • High rents. The investors are still active, and land rents continue to lag the present-day economies of production ag.
  • Election year. Out of the ten past presidential election cycles, land values have only gone down twice. Most of the time, it makes double-digit gains.

Learn more about the factors driving record land prices here.