In the Kansas City Federal Reserve District economist Jason Henderson said the more than 250 bankers he surveyed reported that “robust bidding” by farmers spurred the record sales he saw, but that just enticed land owners to put more land up for auction than what might have been seen.
Henderson reported that farmers bought 73% of the land sold in the Kansas City district. Nebraska saw the greatest increase at 38% for non-irrigated land and 36% higher for irrigated land. His district includes Kansas, Colorado, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.
Land values are uniformly rising throughout the Corn Belt and the Great Plains, thanks to farmers being the primary buyers and to the value of commodities. Higher prices for grain have spurred the most significant demand for land since the 1970’s. However, the higher bids come with warnings about the need for risk management.