Farmers National Company has reported real estate sales volume is up 21 percent during the first half of its fiscal year compared to last year and up 38 percent from a year earlier with an increase in both individual sales transactions and acres sold.
The acres sold by the company are on the increase as well, increasing 10 percent from last year and 27 percent compared to two years ago. Transaction volume has also been on the increase, up 47 percent over the last two years.
Why is Farmers National Company seeing such a significant jump in its real estate sales?
“Our sales activity continues to be driven primarily by the non-operating landowner. So far, few farm operators are selling land and investors continue to be in the market looking for opportunities to add acres to their holdings,” said Randy Dickhut, senior vice president, Farmers National Company. “The slow decline in the land market is part of the reason some are selling.”
Some landowners are making the decision that now is the time to sell and capture some of the land appreciation of the last few years. Dickut also mentioned that there is still good demand for land in most of the company’s 28-state service area.
“The number of buyers and sellers for good land in most markets is in equilibrium, and that seems to be helping our land sales. As long as the seller is realistic about today’s market price for land in their area, there are buyers looking to buy,” Dickut said. “I credit our increases in the face of a slowing land market to our large network agents of educating their clients on the current market prospects.”
Farmers National also reports continued strong land auction activity with a 12 percent increase in the number of auctions sales over last year at this time. The volume of listings for sale is also strong.
“Having the ability to either sell land by auction or through a private treaty listing gives our sellers the most options to achieve a successful sale,” Dickhut said.