Halfway through 2025, land values remain stable across the country despite reverberating uncertainty in the agricultural outlook. And while zooming out to a national level values appear stable, there are some geographic areas showing decline in values.
“The USDA forecasts 2025 net farm income to be the lowest since 2020. This will likely influence producer purchasing power and investor returns, especially as input costs, commodity prices, and interest rates fluctuate,” says Paul Schadegg, senior vice president of real estate for Farmers National Company. “While balance sheets generally remain strong, any negative movements in the ag economy could quickly impact the land market.”
Ty Kreitman of the Kansas City Federal Reserve District reports that from its survey of ag lenders across its district, the average value of non-irrigated farmland declined about 2% from a year ago in the first quarter of 2025. Click here for more from Kreitman.
Commenting on demand, a majority of farmland buyers are farmers, and as such, Schadegg says farmer profitability will be the driver of future farmland value trends.
Regarding supply, the overall market has listings down 25% from the peak inventories in 2020-2021. FNC marketed more than $450 in land in the first six months of 2025. And Schadegg notes an observation that many farm landowners are choosing the stability of the investment in the land’s appreciation rather than selling the property.
The Federal Reserve Bank of Chicago reports the amount of farmland listed for sale was down during the winter and early spring of 2025 compared to 2024. For more takeaways from the Chicago Fed’s survey, click here.
Looking ahead, the survey from the Dallas Federal Reserve Bank also reflects stability as lenders across that district expect farmland values to continue to be stable. Its survey includes takeaways from the second quarter, which you can find here.
Regional Updates
With its mid-year annual report, FNC managers highlight the trends of their regions.
Kansas, Eastern Colorado and Western Missouri
“High-quality farmland values from Colorado through Kansas to Missouri remain steady despite regional differences in rainfall and soil types,” says Steve Morgan, area sales manager with FNC. “Since July 2024, some tracts have sold for more than 5% above market in competitive auctions, while others have dipped slightly below last year’s prices.”
Average prices per acre:
- $5,800 in Kansas
- $7,500 in Missouri
- $3,500 in Oklahoma
Indiana, Ohio, Michigan, Kentucky
“Farms that enter the market with a high percentage of tillable acres, highly productive soil types and in areas with large farm operators will still sell for values within 90% to 95% of the range seen from 2021 to 2023. Farms with fewer tillable acres and lower-quality soils will be priced 10% to 20% below the market highs of a few years ago,” says Jay Van Gorden, area sales manager for FNC.
He says the territory has up to 30% fewer sales than the previous three-year trend, but Van Gorden says that could change to pay down debt, generate operating capital or farmer retirement.
Illinois and Wisconsin
“After a clear softening in late 2024 and early 2025, the Illinois and Wisconsin farmland markets are showing signs of stabilization, especially in regions with high soil productivity and local operator demand,” says Jim Ferguson, relationship executive at FNC. “Despite short-term caution, both sellers and buyers seem more confident than they were in late 2024 or early Q1 2025.”
Ferguson says a characteristic of today’s market is buyers and sellers are enter negotiations with “more balanced expectations.”
“This isn’t a return to the peak-level bidding wars of recent years, but it’s also not a market in retreat. Well-marketed properties with strong soils, good drainage and favorable locations are still attracting strong interest,” he says.
Dakotas and Western Minnesota
“Many expected a correction in 2024 or 2025, but the upper Midwest continues to defy that trend,” says Troy Swee, area sales manager at FNC. He cites:
- a 5.7% increase in land values in South Dakota during the second half of 2024, according to Farm Credit Services.
- a 1.6% rise in Minnesota for the same period, also according to Farm Credit Services.
- a 10.55% increase in eastern North Dakota after two straight years of decline, according to North Dakota State University.
“Tighter balance sheets are also decreasing the number of qualified bidders at land auctions,” he says. “Still, the outlook remains steady. With harvest months away, early signs indicate another strong crop across much of the region. If that holds true, land values and cash rents are likely to stay stable through the end of the year.”
Western Nebraska, Northwest Kansas and Northeastern Colorado
Higher interest rates and lower commodity prices are not putting farmers in this region in a position to expand, says Cole Nickerson, area sales manager at FNC.
“These financial pressures have narrowed margins for many producers, resulting in more cautious land investment behavior,” he says. “As a result, we are seeing a decline in public land listings throughout the territory. Additionally, there has been a slight shift from public auction to traditional listings as sellers aim to protect their investment value.”
Nickerson says a bright spot in the geography’s land market is pasture and hay acres.
“All-time highs in feeder cattle prices, along with elevated cash rental rates, have supported strong demand for grazing land. Hardland pastures with quality fences and excellent access are attracting the most interest from buyers. Although higher cattle prices have brought positivity to the local land market, it hasn’t been enough to offset the broader decline in average land value across the region,” he says.
Recently released data from the University of Nebraska shows for the first time in six years, the state’s land values went backward. Overall, average land values declined 2% to $3,935 an acre.
Eastern Nebraska and Western Iowa
When reflecting on land value trends, Chanda Scheuring, area sales manager at FNC, says the biggest question is how long can the current levels be maintained.
“As the agricultural economy has less readily available cash than in previous years, some farmers are or already have started to feel pressure from their financial lenders,” Scheuring says. “Discussions about tightening budgets and even selling a quarter of their land have been topics some local loan officers have suggested to a few of their clients.”
The buyer pool is shrinking in number of producers who have the ability to expand in the current ag economy.
Texas
With cautious optimism, Sawyer Breeding, real estate sales and ranch manager at FNC, says the fast build up in values during the COVID pandemic has tempered to more normal.
“Prices remain relatively steady, with a moderate year-over-year growth of 1.32% in 2025 for rural real estate in Texas,” Breeding says. “Properties are selling at a moderate pace, with some listings staying on the market longer than in previous years. Buyers are becoming more focused on higher-quality properties. Both buyers and sellers should approach the market with a focus on long-term value, considering factors such as land improvements, water rights and access to utilities, all of which can significantly affect a property’s desirability and worth.”
Iowa and Southern Minnesota
Supply drives the market in Iowa, says Thomas Schutter, area sales manager at FNC.
“As prices softened last year, many potential sellers chose to hold off, leading to tighter supply and a new market dynamic. With land supply down, we saw a slight uptick in prices by the end of Q1 2025. Several auctions across the state reached levels comparable to the highs of 2022 and 2023,” he says.
He says lower grain prices and strained working capital brought a resurgence of farmer leasebacks and off-market opportunities for investors in farmland.
