Farmland values are (mostly) goin’ up in the new year.
That’s right: despite lower farm net income, commodity markets trending down, higher interest rates, and expensive inputs, land valuesare holding strong and expected to stay high over the next year.
Did we mention demand is high? There are more buyers than sellers in the market, according to Farmers National Company.
And your neighbor might be after your acreage. The majority of the demand is from farmers hoping to expand their operations to nearby properties.
Soundbite: “Often this land has not changed hands for generations and once sold, may not be sold again.” — Paul Schadegg, senior VP of real estate operations at Farmers National Company
Meanwhile, farm value numbers aren’t up everywhere. Iowa State University Extension published a study showing a 3.1% statewide decrease in land values from November 2023 to November 2024. The biggest takeaway is that asking prices fell because farms weren’t as profitable in 2024. Decreasing grain prices and high input prices led to tighter margins. Still, experts (and some farmers) aren’t concernedabout the slight dip in the Hawkeye state.
Soundbite: “Do I care today that the value of my farmground is 3% less than it was a year ago? No, I would only care if I were considering selling.” — Jeff Cuddeback, Washington County (Iowa) farmer
By the numbers: The average land value is estimated at $9,265 per acre in Illinois for 2025. In Iowa, the average price per acre dropped to $11,467/acre in 2024.
At the end of the day, farmland is still an attractive asset with high total returns. Turnover rates are low, keeping demand high. We can expect to see land values stay high— or at least stable—in 2025.