FNC News

The U.S. agricultural land market is shifting after years of steady growth. Although land values are still high historically, current signs indicate a more complex situation driven by local and regional factors rather than nationwide trends.

“After years of steady growth, we’re seeing the farmland market stabilize,” said Colton Lacina, senior vice president of real estate operations at Farmers National Company. “This isn’t a sign of collapse but a recalibration that reflects current commodity prices, input costs and regional production conditions.’

Farmland demand now varies widely by location. Areas with high crop yields, diversified farms, and dependable groundwater continue to attract buyers and maintain steady values. Regions facing commodity price pressure, lower yields, or limited alternative income sources are seeing lower demand.

“Farmland values are increasingly determined locally, sometimes down to the township,” Lacina said. “Buyers are carefully assessing soil quality, the percentage of tillable acres, water access, and how a parcel fits into their current operations. Those details matter more than ever.”

Despite mixed signals, market conditions remain favorable for many sellers. Farmland remains a resilient, long-term asset, and well-priced properties are attracting strong interest.

“This is still a workable window for sellers,” Lacina noted. “The key is understanding current local demand and choosing the right approach to bring land to market. Sellers who partner with experienced local land professionals often see better results because they’re aligned with how buyers think today.”

The makeup of buyers remains steady, but their strategies are changing. Active farmers remain the largest group of buyers, yet many are more cautious, weighing profitability concerns against long-term ownership goals. They focus on high-quality land within their established areas.

Investor interest from both local and institutional buyers remains steady. Many view the moderation in land values as an opportunity to enter the market at more disciplined prices.

“Investor buyers are focused on fundamentals,” Lacina said. “They’re targeting land with strong lease potential and reliable income that can support long-term returns.”

Farmers National Company anticipates stable U.S. farmland values overall, with ongoing divergence driven by local conditions. Opportunities may emerge in regions with weaker demand, and sellers' success will depend on accurate market insights and timing.

“The farmland market isn’t weakening; it’s becoming more selective,” Lacina added. “Whether buying or selling, the advantage will go to those who understand their local market and work with professionals who live and breathe those nuances daily.”

REGIONAL LAND VALUE REPORT

South-Central Region: Kansas, South-Central Nebraska and Missouri
Steve Morgan, Area Sales Manager

The land markets in Kansas, Missouri, and south-central Nebraska continue to show resilience, supported by strong agricultural communities and a solid base of productive farmland, according to Steve Morgan, area sales manager with Farmers National Company.

Irrigated tracts with dependable water sources and high-quality dryland farms remain the most in-demand properties, reflecting ongoing demand for reliable crop production, he noted.

“Throughout much of the region, the trend is consistent: farms with disadvantages—such as soil limitations, access issues, or other flaws—are the first to see a decline in value. Conversely, pasture and recreational properties remain highly attractive. Larger grassland tracts are especially desirable for grazing and livestock operations, while smaller recreational parcels are actively sought by buyers interested in hunting or outdoor recreation,” Morgan said.

Transaction volume remains steady and closely matches the pace of the past two years, which were slightly below the record highs of 2021 and 2022, Morgan noted. 

“Although prices have softened from those peak years, the market remains healthy, supported by limited supply and ongoing interest from local operators and investors. Overall, Kansas and Missouri continue to provide a stable environment for land ownership, with quality and location remaining the main factors influencing buyer decisions,” he added.

East Region: Indiana, Ohio, Michigan, Kentucky
Jay Van Gorden, Area Sales Manager 

Land values across Indiana, Ohio, Michigan and Kentucky have shown “remarkable resilience and strength” in the latter part of 2025, according to Jay Van Gorden, area sales manager. 

“A strong mix of investor buyers and active farmers has driven competition and kept sale prices for high-quality farmland at record levels. Farmers National has seen multiple sales in the $15,000 to $19,000 per acre range in the past few weeks in our Eastern Region for highly tillable, productive soils in strong farming areas,” Van Gorden said.

Farms with a lower percentage of tillable acres, woodland, and medium-productivity soils in the region are not at record levels, but they still fetch prices near the top of the range for their type, he added.

“1031 tax-deferred exchange funds from the sale of development land in urban areas continue to support strong land prices. Additionally, some post-harvest commodity price increases and a limited supply of land for sale relative to interested buyers continue to boost land values,” Van Gorden said.

East-Central Region: Illinois and Wisconsin
Jim Ferguson, Area Vice President

Land values in the East-Central Region remain generally stable, with some softening in late 2025, and recent sales have sent mixed signals across the marketplace, according to Jim Ferguson, area vice president for Farmers National Company.

“In the past few weeks, there have been several notable sales, but brokers are also noting lower sale prices on high-quality tracts where strong competition previously seemed automatic. The market has seen multiple auctions end in no-sale or be sold afterward, indicating that farmer buyers — traditionally the main force behind Midwest bidding — are showing noticeably more caution than in previous years,” Ferguson said.

“Aggressive bidding is less frequent, and many buyers seem more price-sensitive, carefully considering long-term returns and cash flow before pushing for top values. This has enabled investors to participate in sales that would have previously been outside their return thresholds,” he added.

Farm Credit Services reported the first decline in Illinois farmland values since 2018, with a 4.41% drop. This was determined through a study of 22 benchmark farms monitored across central and southern Illinois. 

“Profitability and the uncertain outlook remain key limiting factors. With more arm’s-length listings, softer auction competition, delayed USDA reports, and 2025 yields trending slightly below expectations, buyers are cautious, and sellers are adjusting to more realistic expectations,” Ferguson added.

Demand still outpaces supply, but return expectations do not fully align with seller pricing. This creates a gap between what the most motivated buyers can justify and what certain sellers still expect, he noted.

“While this doesn't prevent deals from happening, it influences them. Negotiation, realistic pricing, and strong marketing are more important than ever in bridging that gap in 2026,” Ferguson said. 

Northern Region: Dakotas and Western Minnesota
Troy Swee, Area Sales Manager

“We’ve all heard the saying ‘Location, location, location’ — and this fall, it’s especially true across South Dakota, North Dakota, and Minnesota. While real estate activity remains strong, auction results have varied,” noted Troy Swee, area sales manager for Farmers National Company.

Strong results in less active areas: When few land sales have occurred nearby over the past 18 months, auctions perform exceptionally well. For example, a recent sale in Lyman County, South Dakota, exceeded expectations by more than $3 million, Swee said.

Softer results in high-activity areas: Conversely, when multiple sales occur near the listed property, bidder enthusiasm tends to be more restrained, and prices fall 5–10% below the 2022 peak, Swee added.

“Despite these mixed results, we’ve successfully sold almost all of our properties this fall — thanks to our aggressive marketing approach. In a true seller’s market, simply posting a sign and placing a newspaper ad might suffice. But in today’s climate, sellers need a partner who goes above and beyond. At Farmers National, we market properties with precision and commitment, ensuring maximum exposure and competitive bids,” Swee said.

“We also understand that selling a farm or ranch is often a deeply personal and emotional decision. Our agents take pride in guiding clients step by step through the auction process, ensuring everyone feels informed, comfortable, and confident,” he continued. “If you’re considering selling property in the Dakotas or Minnesota, our team of over 20 regional agents is ready to answer your questions and provide a free market analysis.”

Western Region: Western and Central Nebraska, Northwest Kansas and Northeastern Colorado
Cole Nickerson, Area Sales Manager

The land market across central and western Nebraska, northwest Kansas, and northeast Colorado continues to show mixed results heading into the New Year. Auction outcomes have been inconsistent across the region, with some properties drawing strong buyer interest while others struggle to gain momentum, according to Cole Nickerson, area sales manager for Farmers National Company.

“One of the main factors shaping these results is local economic strength. Areas with strong financial fundamentals are seeing competitive bidding and stable prices, especially for high-quality farmland. Productive cropland with good access and desirable soils remains in demand and maintains premium values,” Nickerson said.

“Conversely, marginal land, including tracts with limited access, difficult terrain, or less fertile soils, is seeing some price pressure. Buyers remain cautious, and these properties may need more competitive pricing to sell,” he added.

Pastureland sales remain strong in the market. Larger tracts with good water, access, and quality fencing are fetching higher prices. Areas with active cattle production continue to see gains in both pasture and farmland values, supported by higher cattle prices over the past few years. 

“Overall, although the market isn't uniformly strong, quality continues to sell well. Sellers of top-tier land remain in a strong position, while those with less desirable properties may need to adjust their expectations in the current environment,” Nickerson said.

West-Central Region: Eastern Nebraska and Western Iowa
Chanda Scheuring, Area Sales Manager

Buyers using tax-deferred exchange (1031) funds and those viewing land as a long-term investment continue to support land values in eastern Nebraska and western Iowa, according to Chanda Scheuring, area sales manager for Farmers National Company. These buyers have helped stabilize farmland prices for high-quality tracts or those with development potential. Conversely, properties with lower production capabilities are feeling the impact of depressed commodity prices over the past few years, Scheuring said.

“The supply of farms for sale remains similar to last year, but the overall buyer pool appears to be shrinking quickly. Farmers and investors are becoming more selective about which properties to add to their portfolios and the prices they're willing to pay. They are only making purchases they feel comfortable with, given tighter profit margins,” she added.

“With the changing market, it’s important to partner with a local real estate professional to not only understand the current value of your personal farm property but also determine the best way to market it in a shifting economy,” Scheuring noted.

Southeastern Region: Texas, Oklahoma and Arkansas
Philip Leabo, Area Sales Manager

The southeastern land market remains strong but is “clearly divided,” according to Philip Leabo, area sales manager for Farmers National Company. 

“Land values for high-quality properties that attract institutional investors remain strong. These properties, with solid tenant bases and healthy rents, continue to fetch top dollar,” Leabo said. “Conversely, in areas where the local tenant pool is small and rents are lower, land values are under some downward pressure. Land values for farms with marginal soils, questionable water supplies, and larger non-tillable areas are also seeing weaker demand. Overall, the southeastern land market remains resilient. Landowners remain optimistic about future demand trends and potential upside.”

Central Region: Iowa and Southern Minnesota
Thomas Schutter, Area Sales Manager

The second half of 2025 was volatile for land values, according to Thomas Schutter, area sales manager at Farmers National Company. 

“A strong early crop was followed by a record-wet July and heavy disease pressure, leaving corn yields disappointing, while soybeans finished above average in many areas. Despite crop challenges, low supply heading into harvest supported an optimistic short-term outlook and kept prices stable to higher pre-harvest levels. As fall progressed, increased market supply and shifting sentiment exerted downward pressure on prices,” Schutter said.

The biggest shift occurred in November as the market adjusted quickly. Buyers and sellers navigated the changing conditions, with each sale telling its own story—high-quality farms continued to attract strong interest and sold well, while lower-quality farms often failed to find buyers, Schutter noted.

“Headlines highlighted the $32,000-per-acre sale in northwest Iowa, while little attention was given to the numerous no-sales and expired listings. This reflects a widening gap between buyer and seller expectations,” Schutter said. “Sellers continue to rely on appraisals and comparable sales from the past year, while buyers are increasingly concerned about future risks. Although the $12 billion farm relief package provides temporary help, it doesn't address the long-term challenges ahead.” 

As 2026 approaches, sustained low commodity prices have drained working capital for another year, heightening pressure on profitability and income expectations.