A new USDA report shows that most cropland prices have climbed between three and ten percent in the past year.
Paul Schadegg with Farmers National states that the market for farmland remains strong. “The surprising thing to me is the stability we continue to see in spite of where commodities might have gone and continue to go. When you talk about the land market, that principle of supply and demand is what keeps driving that.”
Schadegg says there are a lot of motivated buyers in today’s market, and he says the primary buyers continue to be the local farmers who are looking to expand and buy the farm next to them.
Schadegg says one region has seen more farmland sales recently, coupled with lower costs-per-acre. “When we looked at our eight different regions, the only one that we really saw a significant uptick has been in the Dakotas, and there’s some areas up there that have seen anywhere from four to five percent up. Most areas are flat.”
According to Schadegg, low commodity prices and tighter balance sheets can prevent farmers from making a purchase when a piece of land finally becomes available. “They’re just waiting until it makes sense for them. If the market sees some pressure and some of these primary buyers, the farmers, stop buying or reached their limit to bid, these investor types are going to step in and be ready to take advantage of that.”
Schadegg says he’s seen cash rent prices remain steady to higher despite lower commodity prices.
EDITOR’S TAKE:
Mr. Schadegg is not the only observer reporting similar results for ag land. In fact, the USDA recently released its 2025 estimates of state-level cropland values. The annual change between 2024 and 2025 shows all reporting states had higher cropland values in 2025, but Utah (+9.7%), Michigan (+8.2%), and Tennessee (+7.8%) posted the largest increases. Nationally, cropland values increased by an average of 4.7%.
Yes, crop producers might not be doing as well as livestock producers currently, but don’t doubt that if the neighboring farm comes up for sale, they will be standing in line to purchase it. Strong balance sheets will carry the day along with higher expectations for the future of agriculture. Farmers/ranchers, overall, are excellent credit risks. Be sure you keep them at the top of your customer prospect list.
