High quality farmland remains in demand nationwide, and buyers are competing for top acres in Illinois and Missouri.
"We're seeing strong prices, kind of limited supply which kind of goes hand in hand," Jim Sullivan with Sullivan Auctioneers in Hamilton said.
Historically, Sullivan said, that's pretty common when it comes to farmland.
"People tend to hang onto their land. They become attached to it," he said. "It's not often that it comes up for sale."
Top farmland selling for $15,000 per acre across the region also helps boost prices for medium or lower-quality land.
"Over 50 percent is being purchased by farmers. Investors are still active, but farmers are getting at least more than half," Sullivan said. "It's a strong long-term investment that historically has obviously been a good investment."
An accelerated farmland sell-off at the end of 2012 led to continued low supplies of premium quality property, according to Farmers National Company, the largest farmland and ranchland real estate company in the country.
Competition for land has kept values strong, averaging 20 percent higher values over comparable land in 2012, with much of the continued rise due to auction activity driving sale prices.
"Continued low supplies of land in this area have kept the market strong," Sam Kain, area sales manager for Farmers National in Iowa and Minnesota, said in a news release. "Low interest rates have also helped drive the market. Without low rates, current commodity prices do not justify current land values. Any jump in rates could lead to a sales slowdown, but its strength as an investment is keeping activity healthy."
Quality farmland in the East Central region continues to see moderate to steady land values, with increases near 4 percent over the past six months, according to Roger Hayworth, area sales manager for Farmers National in Illinois, Indiana, Ohio, Michigan, eastern Kentucky and eastern Missouri.
Despite fewer sales, Hayworth said he is seeing larger parcels of land being sold in individual transactions. Top prices in the region can be seen in Illinois at $12,500 per acre.
Several positive income years have put farmers in a stronger position than years past to be able to increase the size of their operations. "Many continue to evaluate their personal and business situations before buying, but are making the move when an opportunity arises," Hayworth said in the news release.
The land sales picture complements the farm economy.
"The farm economy here locally and throughout the Midwest is very strong," Sullivan said. "Farmers have managed to have a couple pretty good years. Coupled together with their willingness, even medium-size farmers' desire to grow helped increase the value of farmland throughout the Midwest."
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