Ohio’s farmland auction market holds steady heading into fall

By Ty Higgins, Ohio Ag Net

Ohio’s farmland auction market continues to show resilience as the industry heads into the busy fall selling season. While the rapid price increases seen over the past several years may be easing, demand for quality farmland remains strong, according to Kevin Miller of Oak Ridge Realty and Auction.

As the farmland market continues to evolve, Miller said he sees stability rather than significant shifts in demand.

“What we feel overall is that it’s level,” he said. “We haven’t really seen a tapering off. Some of the marginal farms may be staying on the market a little bit longer, but there are still hotbed areas that are consistently strong because of demand, livestock, and other factors.”

Even with the leveling market, the makeup of auction bidders has remained relatively consistent.

“Typically, we’re still seeing about a 50-50 split between farmers and investors,” Miller said. “If it’s in the neighborhood and highly desirable, farmers are going to be there, and investors are still coming to the marketplace.”

One noticeable change, however, has been a decline in buyers using 1031 tax-deferred exchanges to purchase farmland.

“There was a time a year or two ago when we had a slew of 1031 buyers, and that was really setting the tone for auction prices throughout Ohio,” Miller said. “We’re still seeing some of that, but the number of 1031 buyers has probably tapered off a little bit, and that could be contributing to prices leveling out.”

As fall approaches, Miller said several economic factors will help determine how active the farmland market becomes.

“Commodity prices are probably number one,” he said. “Soybeans have been getting a boost lately, so that’s something we’re watching. We’re also going to see what kind of impact tariffs have.”

He added that harvest season often gives farmers a clearer financial picture before making land purchases.

“Once harvest takes place, guys start settling up and crunching numbers,” Miller said. “Then they can decide whether they want to be more aggressive and add acres or just remain where they’re at for another year.”

The changing market is also affecting how sellers choose to market their farms.

“A couple of years ago, auction was the way to go almost 100% if you had a decent farm,” Miller said. “You wanted to drive that excitement and get bidders competing.”

Today, he recommends evaluating each property individually.

“If you have a really nice farm, auction can still be the way to go,” Miller said. “But if it’s an irregular shape, maybe not the ideal size, or has soils that are a little subpar, then we want to start thinking about a private treaty sale and maybe allow more marketing time to get that farm sold.”

Looking ahead, Miller believes buyers may finally begin seeing more inventory available after several years of tight supply.

“If you’re in the market or thinking about buying, pay close attention,” he said. “I think there are going to be some good opportunities for a lot of folks. In the past, we’ve had such a shortage of land, and the market has been so tight. I feel like this fall there are going to be some good opportunities.”