What is in this article?:
- Demand at five-year high.
- Spurred by profitable crop prices.
- Seen as investment opportunities.
Kansas, Oklahoma, Texas
The land market across the Kansas, Oklahoma and Texas Panhandle farm belt continues to set new highs. Investor interest is increasing, and higher commodity prices have provided fuel for recent record prices.
According to Monty Meusch, area sales manager for Farmers National Company in Kansas, Oklahoma and Texas, during a recent sale of high-quality dryland in Clark County, Kansas, there was a lot of presale activity which resulted in a sales price higher than expected.
“Interest before the sale was high from both out of state and local farmers. While we expected to see prices of $1,200 to $1,400 per acre, the final selling price was $1,730 per acre. The property was sold to a local farmer looking to expand his operation. In addition, a recent sale of irrigated farmland in central Kansas went for more than $4,000 per acre with strong bidding from neighbors and local investors.”
Meusch said buyers are paying top dollar for land in his region. The demand for pasture by cattle producers is very strong and should continue into 2011. The only markets that appear off in this region, compared to pre-2008 levels, are the hunting and recreational properties. “With money being tight and a lot of people concerned about jobs, we have seen a definite pull back on the ‘fun properties’ from central Texas to central Kansas,” said Meusch.