2017 ended with a flourish of real estate activity with several auctions in the last quarter. Demand was generally good and a limited supply of farms for sale kept the price of land steady. In some areas, we actually saw an increase in land values during the fourth quarter.
An indicator of land productivity is the Weighted Average Productivity Index (WAPI). This is a compilation of a farm’s soils and their productive indices as assigned by USDA. One way to track land value is to divide the selling price per acre by the WAPI and then compare the result to other sales.
The chart below shows the results of this calculation for our farm sales over the last year. It indicates that land values across our service area were steady to slightly higher in 2017. It also shows that there is a lot of volatility in the real estate market.
Did you know that Halderman can help determine a value for your farm? If you are considering a farm sale or just want to know what your farm is worth, contact your nearest Halderman representative or call our office at 800.424.2324.