(NAFB) – The agriculture real estate market entered a period of de-escalation beginning in the fourth quarter of 2022.

The market experienced a reduction in both sales volume and value growth since that time, as interest rates increased, and inflation pressures became more apparent, according to Farmers National Company. That trend has continued into the first half of 2023 with fewer properties being offered for sale and market values that are dramatically off the pace seen in the first half of 2022. Value growth is still positive across the Midwest, but increases are now in the single digits instead of the double digits seen in 2021 and 2022.

Farm operators remain the largest group of buyers through Farmers National Company, accounting for nearly 80 percent of all land sale transactions. The sales volume at Farmers National Company through the first half of 2023 continues to exceed the five-year average but is slightly off the “exceptional” pace set in 2021 and 2022.