Farmland values are increasing in parts of the Midwest despite challenges in the ag economy.
Compeer Financial certified general appraiser Aaron Stark is based in southeast Minnesota and says values are up more than 20 percent the past four years.
“That’s not a steady, consistent figure. It’s not five percent every year. But on the average, the increase from last year to what we have on the books in 2026 so far, despite the things that are going on in the world, we’re still up about five percent.”
A 351-acre farm west of Des Moines recently sold for $3.7 million, more than $11,000 an acre.
Stark says, “The strongest couple counties that I’m working in, in Dodge and Le Sueur County, those weighted average tillable acre values have jumped up. Le Sueur County’s close to $13,500 a tillable (and) Dodge County has had some real strong sales so far this year.”
He says the average in that county is closer to $14,500 on a tillable acre basis.
EDITOR’S TAKE:
We tend to report and keep an eye on land values because it provides us with an indication of the strength or weakness of the farm/ranch balance sheet. Land is typically the largest asset of most farmers/ranchers. Strong land values help prop up that balance sheet. Although land values are not increasing at the same rate across the nation, generally they are still growing.
The fact that land values are still rising provides a good foundation for credit when using programs like CADFI. CADFI provides the flexibility to align loan payments with the farm/ranch income stream. Not familiar? Check it out at www.certifiedagdealer.com or download the CAD dealer app today.
