By Andi Anderson
Agricultural land values have remained mostly stable in the first half of 2025, according to Farmers National Company. The main reason is the basic principle of supply and demand—more buyers are active than sellers.
Producers continue to be the top buyers, but individual and institutional investors are also showing strong interest. Farmland is seen as a reliable long-term asset, with Midwest land values rising nearly 57% over the past five years and over 38% in the past decade.
Currently, the number of listings is down by 20% to 25% from the 2020–21 peak. Many landowners are choosing to hold their land, valuing its stability over other investments.
According to Farm Credit Services of America, another factor helping land values is that working capital remains strong, thanks to steady commodity prices and government support.
Still, future land values may face challenges. “The USDA forecasts 2025 net farm income to be the lowest since 2020. This will likely influence producer purchasing power and investor returns,” said Paul Schadegg of Farmers National Company.
Midwest states like Iowa and Nebraska are already seeing small declines. Nebraska cropland fell 2% to $3,935 an acre—the first drop in six years. Higher interest rates, lower crop revenues, and higher production costs are adding pressure.
Meanwhile, values rose in states like South Dakota and Wyoming. South Dakota cropland increased 3.5% in six months, while Wyoming land stayed stable.
Looking ahead, a large 2025 corn harvest may affect markets. “When producers are still willing to invest in farmland, it tells us they believe in the future of the industry,” said Tim Koch of FCS America.
Land values may come under pressure later in 2025, especially if financial or global trade challenges continue.
Photo Credit: getty-images-elhenyo
Categories: Illinois, Business