By Paul Schadegg, Sr VP of Real Estate, Farmers National Company
Omaha, NE — Despite ongoing challenges in commodity markets and uncertain farm profitability, agricultural land values have remained remarkably stable through mid-2025, according to Farmers National Company. This resilience is mainly driven by the basic economic principle of supply and demand; there are simply more motivated buyers than willing sellers.
While producers remain the main buyers of ag land, interest from individual and institutional investors cannot be ignored, Farmers National Company noted. As land values stabilize after reaching peaks within the past five years, investors are increasingly attracted by both annual returns and long-term appreciation. According to Farm Credit Services of America, benchmark Midwest farmland values have increased 56.9% over the past five years and 38.3% over the past decade, reinforcing land’s appeal as a long-term asset.
Inventory remains limited, with listings down 20-25 percent from the peak in 2020-2021. Many long-term landowners are choosing to hold onto their properties, recognizing the stability and value appreciation land offers compared to more volatile investments.
According to Paul Schadegg, Senior Vice President of Real Estate at Farmers National Company, farm profitability will be a key factor affecting land values in the future.
“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 Schadegg. “While balance sheets generally remain strong, any negative movements in the ag economy could quickly impact the land market.”
Geopolitical developments also influence the market. Trade policies, tariffs, and global unrest create uncertainty, impacting both domestic and international markets. While renegotiated trade agreements may present future opportunities, current tariffs could decrease demand for U.S. agricultural exports as other countries expand their production and infrastructure.
Looking into the second half of 2025, those with solid financial positions–both producers and investors–will be best equipped to pursue land purchase opportunities. During periods of volatility, Farmers National Company sees strong demand for real estate and management services as landowners seek answers in today’s market.
Farmers National Company has successfully marketed more than $450 million in land value in the first half of 2025.
“We have had a strong start to the year and will continue to adapt to the global elements that impact the land value market,” Schadegg says.
REGIONAL LAND VALUE REPORTS
South Central Region: Kansas, Eastern Colorado, and Western Missouri
Steve Morgan, Area Sales Manager
High-quality farmland values from Colorado through Kansas to Missouri remain steady despite regional differences in rainfall and soil types. 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 sit at $5,800 in Kansas, $7,500 in Missouri, and $3,500 in Oklahoma. Notable recent sales include a $2.89 million transaction for 150.8 acres in Brown County, Kansas.
As the 2025 season unfolds, weather and irrigation access will be key factors in crop performance, particularly in western parts of Missouri and Kansas. Local land experts continue to track production and pricing trends across the region.
East Region: Indiana, Ohio, Michigan, Kentucky
Jay Van Gorden, Area Sales Manager
Land sales volume in the Eastern area continues the trend from 2024 of being 20-30 percent below the average of the previous three years. In the Eastern Region, the main reason for land coming on the market is usually either a decision to sell due to generational change or land in more urban areas selling for uses other than farming.โฏ
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 10-20 percent below the market highs of a few years ago.โฏ
With ongoing uncertainty in both the agricultural and overall economies, we may see more land being offered on the market to pay down debt, generate operating capital, or because of operator retirement. Opportunities to buy farmland are available, and several quality options to purchase good farmland will be accessible in our region later this summer into early fall. Notable opportunities include the sale of lands at auction, such as 700 acres in five tracts in Starke and Fulton Counties, Indiana, on August 27, and 1,024 acres in nine tracts in Shiawassee County, Michigan, on September 9.โฏ
East-Central Region: Illinois and Wisconsin
Jim Ferguson, Relationship Executive
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. While volatility continues in the broader agriculture economy, several factors are supporting a more optimistic outlook.
Buyer sentiment is growing stronger, farm operators with solid liquidity are returning to the market, and some institutional interest remains for the most suitable tracts. Inventory stays limited with few farms for sale, which supports prices. Despite short-term caution, both sellers and buyers seem more confident than they were in late 2024 or early Q1 2025. Sellers who were hesitant are now reconsidering, and buyers are more willing to act if prices align with current fundamentals.
The market is adjusting to a new normal where both buyers and sellers enter negotiations with more balanced expectations. Think stabilization, not resurgence. 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.
Illinois landowners should anticipate a market that rewards preparation, accurate pricing, and effective marketing strategies. The volatility experienced in late 2024 has shifted to a more steady and stable environment in 2025, especially for those with high-quality land and professional guidance.
Wisconsin landowners should anticipate a stable yet selective market. Quality farms in prime locations continue to sell well, while average parcels might need lower prices and improved marketing to draw buyers.
Northern Regions: Dakotas and Western Minnesota
Troy Swee, Area Sales Manager
Land values in Minnesota, North Dakota, and South Dakota remain strong despite rising interest rates, higher input costs, and falling commodity prices. Many expected a correction in 2024 or 2025, but the Upper Midwest continues to defy that trend.
Farm Credit Services reported a 5.7% increase in land values in South Dakota during the second half of 2024, while Minnesota experienced a 1.6% rise. North Dakota State University noted a 10.55% increase in eastern North Dakota — a surprising jump considering farm income has declined for two straight years.
Several factors support current values: abundant cash in the agriculture sector, strong local yields, and limited property listings. Among these, low inventory has the greatest impact. When there haven’t been recent sales nearby, properties often sell for prices equal to or higher than in 2022. However, in areas with several recent farm sales, values may decline due to fewer active buyers.
Tighter balance sheets are also decreasing the number of qualified bidders at land auctions. 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 Region: Western Nebraska, Northwest Kansas and Northeastern Colorado
Cole Nickerson, Area Sales Manager
Pressure on net farm income in 2025 continues to keep land values at or below the peaks seen in recent years. High interest rates and lower commodity prices are the main reasons farmers are hesitant to invest in additional farmland. These financial pressures have narrowed margins for many producers, resulting in more cautious land investment behavior.
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. High-quality land remains a highly sought-after commodity, both at auction and through listings. Strong interest in productive irrigated cropland with good access, desirable soils, and ample water has kept those values high. Farms with less productive soils, poor access, or terrain issues have experienced the greatest decline in value.
Pasture and hay meadow land have been the bright spot in the local land market. 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.
West-Central Region: Eastern Nebraska and Western Iowa
Chanda Scheuring, Area Sales Manager
Land values in Eastern Nebraska and Western Iowa have stayed fairly steady over the past couple of years, despite challenges from lower commodity prices and rising input costs. But the big question on everyone’s mind is whether this market can be sustained.
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. 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.
Still, some top producers want to, and have the financial ability to, expand their operations over the coming year by buying more farmland. But that pool of buyers is shrinking.
With the changing market, it’s important to partner with a local real estate professional to not only understand the current value of your farm property but also the best way to market it in a shifting economy.
Texas
Sawyer Breeding, Real Estate Sales/Ranch Manager
The outlook for rural land markets in Texas is cautiously optimistic. After the rapid appreciation following the pandemic, most regions are now showing more stabilized trends. Prices remain relatively steady, with a moderate year-over-year growth of 1.32 percent in 2025 for rural real estate in Texas. 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.
In conclusion, the Texas rural land market is shifting toward a more stable phase, with moderate price increases and selective buyer activity. Landowners should stay informed about regional trends and consider the intrinsic value of their assets to make long-term decisions.
Central Region: Iowa and Southern Minnesota
Thomas Schutter, Area Sales Manager
Following the dip in land values in 2024, the market shifted in early 2025.โฏThe biggest change? A sharp decline in available land. As prices softened last year, many potential sellers chose to hold off, leading to tighter supply and a new market dynamic.โฏWith land supply down, we saw a slight uptick in prices by the end of Q1 2025.โฏSeveral auctions across the state reached levels comparable to the highs of 2022 and 2023. Uncertainty in financial markets — including tariff concerns — pushed investors back toward real assets, adding further momentum to land values during that period.
By May, advertised land supply had tightened even further to pre-COVID levels, but we also saw a quiet resurgence of farmer leasebacks targeting investor buyers. With grain prices down and working capital strained, several off-market opportunities have emerged, particularly appealing to local and regional investors looking for stable, income-producing assets.
Our Central Region team closed 55 farm sales totaling over $50 million in the first half of 2025.
If you or someone you know is interested in selling, please contact one of our trusted land agents for more information.
