The report notes that this is a new trend for the central US farmland market.
“After years of steady growth, we see the farmland market stabilizing,” said Colton Lacina, senior vice president of real estate operations at FNC. “This is not a sign of collapse, but a recalibration that reflects current commodity prices, input costs and regional production conditions.”
Demand for agricultural land now varies widely by location. Areas with high crop yields, diversified farms and reliable groundwater continue to attract buyers and maintain stable values. Regions experiencing commodity price pressures, lower returns or limited alternative sources of income are seeing lower demand.
“Agricultural land values are increasingly determined locally, sometimes even in the municipality,” says Lacina. “Buyers are carefully assessing soil quality, percentage of buildable acres, access to water and how a parcel fits into their current operations. Those details are more important than ever.”
Despite mixed signals, market conditions remain favorable for many sellers. Farmland remains a resilient long-term asset, and well-priced properties are attracting strong interest.
“This is still a workable window for sellers,” Lacina noted. “The key is understanding current local demand and choosing the right approach to bringing land to market. Sellers who work with experienced local land professionals often see better results because they align with how buyers are thinking today.”
The composition of buyers remains stable, but their strategies are changing. Active farmers remain the largest group of buyers, but many are more cautious, weighing profitability concerns against longer-term ownership goals. They focus on high-quality land within their established areas.
Investor interest from both local and institutional buyers remains stable. Many see the moderation in land values as an opportunity to enter the market at more disciplined prices.
“Investor buyers are focused on the fundamentals,” Lacina said. “They are focusing on land with strong lease potential and reliable income that can support long-term returns.”
FNC, the largest landowner services provider, expects broadly stable U.S. farmland values, with continued divergence due to local conditions. Opportunities may arise in regions with weaker demand, and seller success will depend on accurate market insights and timing.
“The agricultural land market is not weakening; it is becoming more selective,” Lacina added. “Whether buying or selling, the advantage goes to those who understand their local market and work with professionals who live and breathe these nuances every day.”
Select Regional Reports
Region East: Indiana, Ohio, Michigan, Kentucky
According to FNC sales manager Jay Van Gorden, land values in Indiana, Ohio, Michigan and Kentucky have shown “remarkable resilience and strength” through the second half of 2025.
“A strong mix of investor buyers and active farmers has fueled competition and kept sales prices for high-quality farmland at record levels. Farmers National has seen multiple sales in the range of $15,000-$19,000 per acre for highly cultivable, productive lands in strong agricultural areas in recent weeks in our eastern region,” Van Gorden said.
Farms with a lower percentage of cultivable hectares, forests and soils with mediocre productivity in the region are not at record levels but are still fetching prices near the top for their type, he added.
“1031 deferred tax dollars from the sale of development land in urban areas continue to support strong land prices. In addition, some post-harvest commodity price increases and a limited supply of land for sale relative to interested buyers continue to increase land values,” Van Gorden said.
Southeast Region: Texas, Oklahoma and Arkansas
The land market in the South East remains strong but is “clearly divided”, according to Philip Leabo, FNC area sales manager.
“Land values for high-quality properties that attract institutional investors remain strong. These properties, with solid tenant bases and healthy rental rates, continue to fetch top dollar,” Leabo said. ‘Conversely, in areas where the local tenant pool is small and rents are lower, land values are under some downward pressure.
“Land values for farms with marginal soils, questionable water supplies and larger non-cultivable areas are also seeing weaker demand. Overall, the southeastern land market remains resilient. Landowners remain optimistic about future demand trends and potential upside.”
Central region: Iowa and Southern Minnesota
According to FNC area manager Thomas Schutter, the second half of 2025 was volatile for land values.
“A strong early crop was followed by a record wet July and heavy disease pressure, leaving corn yields disappointing, while soybeans finished above average in many areas. Despite crop challenges, low supply heading into harvest supported an optimistic short-term outlook and kept prices stable to higher pre-harvest levels. As the fall progressed, increased market supply and changing sentiment put downward pressure on prices,” Schutter said.
The biggest shift occurred in November, when the market quickly adjusted. Buyers and sellers had to navigate the changing conditions, with each sale telling its own story: High-quality farms continued to attract strong interest and sold well, while lower-quality farms often failed to find buyers, Schutter noted.
“Headlines highlighted $32,000 per acre sales in northwest Iowa, while little attention was paid to the numerous non-sales and expired listings, reflecting a widening gap between buyer and seller expectations,” Schutter said. “Sellers continue to rely on appraisals and comparable sales from the past year, while buyers are increasingly concerned about future risks. While the $12 billion farm aid package provides temporary relief, it does not address the long-term challenges ahead.”
As 2026 approaches, persistently low commodity prices have depleted working capital for another year, increasing pressure on profitability and income expectations.
This press release has been edited for content and style by BloodHorse Staff.
#Local #regional #trends #Major #factors #land #values