• Farm profits remained strong in 2013, keeping the demand for land leases steady, according to Farmers National Company, the nation's leading farm and ranch real estate company in the country. Despite lower commodity prices and decreased gross incomes, farm profitability remains good due in part to a 30 percent drop in fertilizer prices since 2012 and carryover grain sales from the previous crop year.
• "Demand for high quality property is keeping both land values and rental rates strong," said David Englund, AFM, executive vice president of farm and ranch man

agement of Farmers National Company. "Overall, lease rates are higher on quality land if the land was rented below market in 2013, but rates across the board are mostly level. Fertilizer costs are expected to drop further in 2014, which will help farmers remain profitable."
• The desire of farm owners to expand existing operations is leading to highly aggressive sales activity and keeping the demand for farmland strong. In addition, there has been a trend of young people coming back to family farm operations prompting additional demand for land.
• "As a result of these factors, lease rates for land should remain

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