New data on farmland sales in the Seventh Federal Reserve District, which includes Iowa, Illinois, Indiana, Michigan and Wisconsin, show that the average farmland prices there soared 22% in value from 2021 to 2022, the number of sales is soaring, and the share of investors—not working farmers—in those sales has jumped up. The Fed’s February 2022 Report gives the data.
An Iowa Falls land dealer, Jeffrey Obrecht, known as “The Dirt Dealer” says that farmland sales are surging. “I’ve been in the business 41 years, and this is as strong as I’ve ever seen it. Normally we sell 35 farms per year. In 2021, we sold 76.” Obrecht went on to say, “In a normal year, 20% of farms are sold to investors or 1031 ‘Property’ Exchange sales and 80% sold to farmers or adjoining landowners. Now, in 2021, about 40% of land sold went to investors and 1031 Exchange, and only 60% went to farmers and adjoining landowners.”
