Farmland Values Relatively Stable Amid Volatile World Markets

                             Map courtesy of American Farm Bureau Federation

Farmland values have mostly leveled off over the last year, with some areas and land types seeing slight increases while others saw slight decreases, according to recent land values surveys.

The overall farm economy has played a role. Purdue University Ag Economist Michael Langemeier said farmers have faced tight margins and high input costs, although farmers with livestock are faring better economically.

Langemeier helps organize Purdue’s monthly Ag Economy Barometer and said the April 7 report shows an increase in overall farmer sentiment, as well as improved expectations for farmland values going forward.

“There has been an increase in the index relative to farmland values,” he said.

The overall ag economic outlook is tied to farmland value expectations, and he said a few things have supported farmer optimism even as input costs have soared.

“The bridge payments were received between the February survey and the March survey,” Langemeier said, “and we also saw some increases in corn and soybean prices. When they’re more optimistic about the future, they’re more optimistic about land values.”

Still, Langemeier cautioned that farmer optimism levels are lower than this time a year ago, and concerns remain about volatile crop markets, input costs, and the impact of global news on U.S. farm profitability. He said low net returns and a decrease in demand for farmland by those outside agriculture would likely mean land values drift lower.

Driving land values

Several factors help drive farmland values, such as profitability, interest rates, and investor demand for land.

“I think there’s still demand for land from outside investors,” Langemeier said.

He also said some of his ag barometer survey respondents are livestock producers, and they are overall more optimistic about the ag economy and land values than crop producers.

Farmland value surveys reflect the concerns farmers have about the economy. Luke Worrell is the owner of Worrell Land Services and serves as chairman for the 2026 Illinois Farmland Values Survey & Conference. Writing in the Illinois Society of Professional Farm Managers and Rural Appraisers’ annual land values survey report released April 2, Worrell said the farmland picture is mixed.

“The market is in a peculiar place in time wherein there are pockets of strength along with pockets of depressed values,” said Worrell.

Strong and stable

Overall, land values surveys in Midwestern states have stayed fairly level.

The University of Missouri Farmland Values Survey from last summer showed the average value of “good” crop ground at $8,596 per acre, very similar to last year’s average of $8,524. Pastureland values were also fairly stable.

The Illinois Farmland Values Survey valued “good” Illinois farmland in 2025 at $12,493 an acre, almost identical to $12,502 for 2024.

Iowa State University’s Land Values Survey, released in December, showed the average value of all Iowa farmland at $11,549 an acre, up 0.7% from $11,467 the prior year. “High-quality” land saw an average value of $14,030 per acre, up 0.7% or $101 an acre.

For Missouri, Illinois and Iowa, 2023 was the highest average farmland value year so far.

Iowa State Ag Economist Rabail Chandio, who organizes the ISU Land Value Survey, said while the actual dollar figure increased, if adjusted for inflation, farmland values declined 1.8% in 2025. She said there were also regional variations.

“This growth was reported by six of the nine crop reporting districts in Iowa, concentrated at the eastern and western parts of the state,” said Chandio.

She said survey respondents identified several things supporting farmland values. “Some of the major factors that kept land markets up this year were limited land supply, reported as the most popular positive influence on the land markets.”

“This was followed closely by strong yields, the cash and credit availability by buyers in the land market, from the reserves that were built earlier on, and also including very strong and stable demand coming from farmers and investors alike, as well as good performance in the livestock sector.”

Chandio said negative factors working against land values include lower commodity prices, interest rates, higher input costs and uncertainty around trade and tariffs.

She said most survey respondents expected farmland values to stay the same or decline slightly in 2026, although most respondents expect farmland values to increase by 2030.

EDITOR’S TAKE:

As we often say when talking about land values, land is the single most important asset farmers/ranchers possess. It provides stability to their balance sheet and equity for their credit. The biggest issue in agriculture today, especially for crop farmers, is cash flow. With rising input costs and lower prices for their commodities, it leaves little room for profit. As the article points out, however, livestock producers are doing much better financially. But undergirding all of this is the stable land prices.

Take time to visit with farmers/ranchers in your area. It is difficult to generalize just how well or poorly they are doing versus some national average. And for those who are not faring as well currently, that is a perfect time for you to discuss why purchasing or leasing their next truck or SUV from a CAD member can be a real financial benefit. You are in the driver’s seat because you can offer AgPack®, CADFI, and CAD Protect programs that other dealers cannot! These programs provide much needed assistance for managing their input costs, finance costs and for protecting their overall truck investment. Talk up your advantages, they can actually help you conquest more truck sales!