By Scout Nelson
Cropland prices face growing challenges during the second half of 2026. While farmland values remain stable in many areas, several economic factors are putting pressure on the market.
In July 2026, the USDA released its annual Agricultural Land Values Summary. The report showed that U.S. cropland values increased by 3.3% from 2025 to 2026. North Dakota cropland values also grew by 3.3%.
Bryon Parman, NDSU Extension Agricultural Finance Specialist and Associate Professor, highlighted that a North Dakota State University report showed land values growing by just under 1% during the same period, which is much lower than the growth rates above 10% seen in recent years.
When inflation is considered, cropland values are mostly flat. The inflation rate from July 2025 to July 2026 is 3.4%, which means real land values show little or no growth.
A July 2026 "Benchmark Farmland Report" from Ag Country Farm Credit Services reported that North Dakota cropland values declined by 1.8% over the past year.
Land sales activity is also slowing. The Ag Country report noted that farmland sales in North Dakota are 11% below normal levels. Other states show even larger declines. Dryland cropland sales are down 50% in Nebraska and 45% in South Dakota.
The average 30-year fixed mortgage rate from 2014 to 2020 was 3.9%. During the last three years, 20-year fixed agricultural mortgage rates have averaged between 6.4% and 7%. Higher borrowing costs make land purchases more expensive and limit buying opportunities.
Lending standards are also becoming stricter. In its August 26, 2026, report, the Kansas City Federal Reserve stated that lenders across agricultural regions are requiring more collateral.
About 30% of lenders in the St. Louis Federal Reserve district increased collateral requirements, while roughly 20% of lenders in other districts did the same.
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Categories: North Dakota, Crops