National Land Realty Reports Stable Acreage Prices in First Half of 2024
TL;DR
Florida's average price per acre surged by $24,000, reflecting a remarkable 118% increase, presenting a lucrative opportunity for competitive buyers.
NLR's latest report analyzes Q1 and Q2 agricultural land sales for 2024, showing stable national average price per acre with notable trends in specific states.
Stable land prices indicate significant demand for farmland, ensuring a steady supply of produce, meat, dairy, and feed for consumers nationwide, making the world a better place.
California's average price per acre dropped by $12,226 over the past year, driven by high interest rates and low commodity prices, providing an interesting insight into the agricultural market.
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National Land Realty (NLR), the nation's fastest-growing land brokerage firm, has released its latest report on agricultural land sales across the United States for the first half of 2024. The data, compiled from NLR's extensive network of over 400 agents and brokers in 48 states, shows a stable national average price per acre (PPA) with notable shifts in regions like Louisiana, Florida, and California.
The national average price per acre saw a modest increase of approximately 5%. This stability is notable given the previous years of significant farmland appreciation, reaching record prices in 2023. According to NLR CEO Ronnie Richardson, the sustained high prices are driven by robust consumer demand for produce, meat, dairy, and feed, despite rising input costs and interest rates. Richardson expects these values to remain strong barring major disruptions such as natural disasters or pandemic-level events.
In Louisiana, the average price per acre decreased by $10,866. Richardson attributes this decline to divestments by larger landowners, creating opportunities for buyers to capitalize on economies of scale. While Louisiana remains heavily influenced by supply and demand dynamics, the slight price decrease makes land purchases attractive for new buyers.
California experienced a more significant drop in average price per acre, down by $12,226 or 27%. This decline is primarily due to high interest rates and low commodity prices for key crops like almonds and walnuts. Despite reports of an exodus from California real estate, agricultural markets remain unaffected by geopolitics. However, taxes and interest rates continue to impact the market. Richardson advises potential buyers to monitor the market closely, as institutional investors may need to adjust prices to match demand.
Florida, on the other hand, saw a remarkable increase in average price per acre by $24,000, reflecting a 118% surge. The soaring demand for land is driven by the state's popularity as a relocation destination. Richardson emphasizes that the high demand will likely persist, making land purchases in Florida, especially transitional properties, a sound investment strategy.
The report also provides percentage changes in average PPA across various states. Notable increases were observed in Nevada (+211.26%), Rhode Island (+184.06%), and Texas (+62.54%), while significant declines were reported in Oregon (-76.08%), Louisiana (-68.97%), and Montana (-62.60%).
Overall, National Land Realty's report offers critical insights into the U.S. land market, highlighting opportunities and risks for investors. As land prices stabilize nationally with regional variances, stakeholders can make informed decisions based on these trends.
Curated from News Direct
