By Chanda Scheuring, ASM, West Central Region, Farmers National Company
In my decade-plus career at Farmers National Company, I’ve often said, “If only I had a crystal ball.”
We are entering a bit of uncertainty in the agriculture industry this fall. Commodity markets have declined while interest rates, real estate taxes, and other expenses have increased. Adding to the complexity, it’s an election year — not that all the commercials and phone calls will let us forget.
Over the past months, I’ve spoken with many individuals anxious about the uncertainty, especially those planning to sell their farm or ranch real estate. It’s no secret that agricultural land has experienced historically high values over the past few years, thanks to $7 corn and generous government assistance payments. This extra cash helped fuel the ag economy and increase real estate values.
But what happens when the ag economy isn’t as strong? Enter me saying, “If only I had a crystal ball.”
We continue to see strong buyer interest with cash for land purchases. However, a significant segment of the potential buyer pool would benefit from moderating interest rates to help with cash flows. It will take an action of fiscal policy to move that needle.
As an area sales manager for Farmers National Company, clients seek out our advice regarding land values. I wish I could always tell them what they want to hear – that they have prime dirt, and it will fetch a historic price per acre for the county. That’s not always the case, and we must build realistic expectations.
In a recent management training, the instructor gave our group his ‘single best piece of advice’: Always under promise and overperform.
While this advice always holds value, it’s especially true in the kind of real estate market we may be entering. Have I lost out on deals because my price expectations for the property were lower than a competitor’s promise? Absolutely. But at the end of the day, I trust myself and the other experts at Farmers National Company. We bring our past experiences and local knowledge to our client’s table. We do everything in our power to decrease as many negative outside factors as possible and find a farm’s true and best value when the time comes.
Growing up on my family’s farm, I learned the value of honesty and hard work. For example, I now understand my dad was being honest when he said those hot summer days putting up hay bales or snow days spent scooping cattle feed bunks were ‘character building.’ I’m sure my teenage self rolled her eyes, but there was truth in his statement.
I believe all our real estate agents at Farmers National Company employ the same tactics when we discuss selling a client’s real estate. Sure, it’s fun and sometimes easy to sell agricultural land when things are on the upswing, when there seems to be no ceiling to where prices are going. But who do you want in your corner when the market starts to turn? When there are fewer buyers in the room. When there’s less money to be spent?
For me, I want that farm kid — the one who had ‘character building’ in the summer and winter. The one who will be honest with me about my property’s value. The one who will put in the hard work and walk me through my options and what to expect.
Because, in my opinion, having a partner you can trust in these uncertain times is worth far more than anything you’d find in some silly crystal ball.
Your local FNC farm manager or real estate salesperson is your “boots on the ground” resource for bringing your property to market.
Contact your local FNC representative: www.farmersnational.com/find-a-rep
