Farmers National, a national farm land brokerage, estimates that central Kansas agricultural land is up since June of 2010 by about 25 percent for non irrigated land, to $2,500 an acre, and 33 percent to $4,000 an acre for irrigated land.
Many are watching closely for signs of a bubble, but the Farmers National said that, so far, there aren’t any. It’s mostly farmers with extra cash using it to buy land. Only 15 to 25 percent of buyers are outside investors, it said."Despite the robust demand driving sales activity levels, reports show that lenders are taking a relatively conservative approach to lending,” said Lee Vermeer, AFM, vice president of real estate operations at Farmers National Company. “Strong profits the past few years have provided cash for farmer buyers, while investors are taking cash from other sources to rebalance portfolios."Reassuring, I suppose. On the other hand, this is a company that makes its money from selling farm ground and from managing it for absentee owners.