What is in this article?:
- Demand at five-year high.
- Spurred by profitable crop prices.
- Seen as investment opportunities.
Arkansas, Mississippi and Tennessee
According to Keith Morris, area sales manager for Farmers National Company in Tennessee, Mississippi, Arkansas, Alabama, western Kentucky, Louisiana, and southern Missouri, the southern region presents some great opportunities for investment.
“If you’re looking for good buys and values on all types of properties, the South is where to look,” said Morris. “Even though high grade precision leveled farmland is hard to find, you can still buy it for $3,000 to $3,500 per acre. Some high grade cotton ground, with class one soils, has moved up a little higher with some reports of over $4,000 being paid per acre. That was expected, based on record cotton prices.”
Less than optimum farmland is going for $2,300 to $2,800 per acre in most locations, said Morris. He reports that recreational buyers in this region can get a bargain. “On some rural properties that have been harvested for timber, you can find buys under $1,000 per acre. However, most recreational properties range from $1,400 to the low $2,000 range throughout the region. I don’t think the price will continue to drop, as buyers are starting to look again for that special weekend spot.” The market for loans for these types of properties has tightened, he added.
Prices for top land are averaging $3,250 per acre in Arkansas, $3,000 per acre in Tennessee and $3,500 per acre in Mississippi.