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HERTZ FARM MANAGEMENT PRESIDENT ON SKYROCKETING LAND VALUES AND DEMAND
Sep. 15, 2021
By Jenna Hoffman, The Scoop magazine
To view the complete report and interview with Doug Hensley, click here.
In August, 80 acres of farmland sold for a record $22,600 per acre in Grundy County, Iowa. Earlier the same month, another parcel of farmland in northwest Iowa sold for $19,000 an acre.
To shed light on the record-breaking farmland prices, Doug Hensley, president of Hertz Farm Management, joined Davis Michaelsen on AgriTalk.
"It seems like more people are stepping up to raise their hand and say they're interested in a farm. That's a little different than what we experience on a year-to-year basis."
Federal Reserve reports from Chicago, Kansas City and other districts show current lending availability greatly exceeds previous years totals, according to Hensley. Therefore, both banks and farmers are jumping on any available opportunity.
"[Farmers] were able to make really good money on their 2020 crop, and obviously forward contracts in 2021 look good. Banks have a ton of money available to lend right now," Hensley says. "When you look at forward cash flow, more borrowers are being reflected right now as very qualified borrowers. Then you add on top of that, there's a lot of cash still out in the countryside."
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