In the last several months, John Pearson has seen a lot more optimism in the farm and ranch industries in Wyoming and surrounding states. That, combined with dropping land prices, could help lead to an uptick in agricultural real estate sales.

“Some ranchers and farmers either wanting to sell or buy are still kind of taking a wait-and-see approach, but I would say that there is more optimism in the ranch and farm marketplace — and a number of factors have played into that, including the election,” says Pearson, owner-broker of Pearson Real Estate in Buffalo, Wyo. “We’ve been noticing more optimism over the past several months.”

When oil and gas prices plummeted in late 2014 and 2015, land sales in Wyoming and other mineral-rich states were negatively affected, Pearson says. Dropping prices for agricultural commodities increased the pessimism.

“When working ranch and farm families buy a property, they want some kind of return on it, and the profit-taking just wasn’t there,” he says.

But since commodity prices have stabilized the mood is much better, and that could bolster the ag real estate market because farmland prices are more attractive.

Concerning ranchlands, Pearson adds, “They have stayed a lot more stable during this period, but there just weren’t very many sales in Wyoming and some of the other Western states. But I think we’re starting to see some ranch prices come down, too, which will make ranches a little more appealing to buyers.”

Ranchers make upgrade
A Wyoming ranch family purchased the 2,880-acre Zimmerschied Ranch, near Devils Tower in northeast Wyoming, for $2.55 million, or $885 per acre. This was 7% lower than the asking price of $2.736 million.

“It’s a real nice ranch in very good condition,” Pearson says. “This ranch is a very nice move up for them.”

Pearson says that the buyers sold their western Wyoming ranch to acquire the Zimmerschied Ranch, which is about 35 miles northwest of Sundance.

“They wanted to expand and get a little bigger place, and this was an ideal fit. They will be operating it as a working cattle ranch,” Pearson says.

The ranch features good dryland grazing for about half the year, has about 210 acres of dryland farmland for hay production, and abundant water resources — including reservoirs, wells, a windmill, live water and 3,000 feet of pipeline.

Other improvements include a well-kept home, a bunkhouse, a barn, a Quonset building and shop, along with three sheds and two sets of corrals. The transaction included 160 acres of Bureau of Land Management lease lands.

Additional appeals were 50% of the mineral rights, excellent wildlife habitat and scenic views of the Black Hills and Devils Tower.

Pearson says that the Zimmerschied family operated the ranch for about 75 years, and this was an estate sale.

Waggener writes from Laramie, Wyo.