Article excerpts:

“Halfway through 2025, land values remain stable across the country despite reverberating uncertainty in the agricultural outlook. And while zooming out to a national level values appear stable, there are some geographic areas showing decline in values.

“The USDA forecasts 2025 net farm income to be the lowest since 2020. This will likely influence producer purchasing power and investor returns, especially as input costs, commodity prices, and interest rates fluctuate,” says Paul Schadegg, senior vice president of real estate for Farmers National Company. “While balance sheets generally remain strong, any negative movements in the ag economy could quickly impact the land market.”

Ty Kreitman of the Kansas City Federal Reserve District reports that from its survey of ag lenders across its district, the average value of non-irrigated farmland declined about 2% from a year ago in the first quarter of 2025.

Commenting on demand, a majority of farmland buyers are farmers, and as such, Schadegg says farmer profitability will be the driver of future farmland value trends.

Regarding supply, the overall market has listings down 25% from the peak inventories in 2020-2021. FNC marketed more than $450 in land in the first six months of 2025. And Schadegg notes an observation that many farm landowners are choosing the stability of the investment in the land’s appreciation rather than selling the property.

The Federal Reserve Bank of Chicago reports the amount of farmland listed for sale was down during the winter and early spring of 2025 compared to 2024

Looking ahead, the survey from the Dallas Federal Reserve Bank also reflects stability as lenders across that district expect farmland values to continue to be stable. Its survey includes takeaways from the second quarter, which you can find here.”

Link to article HERE