Land prices have officially reached a new high in the United States.
According to DreamDirt Auctioneers, land in southeastern Nebraska sold on October 27, 2022 for US$27,400 per acre.
This record-breaking price had two tracts; 116.07 acres for $27,400/acre, and 163.07 acres for $14,400. If you do the math, that totals to around $5.5 million for approximately 280 acres.
Just how far will it go?
Canada is also seeing a continued increase in farmland values, according to Farm Credit Canada’s first half of 2022 land values report.
But there are cracks beginning to appear in the the strength of farm land value. Several interest rate hikes since June are beginning to weigh on the speed of land sales, as well as the value. Farmers have reported to RealAgriculture that as loans come up for renewal, the full brunt of interest rate increases is cooling demand for more debt.