By Jamie Martin
After years of growth, the US farmland market is showing signs of stabilization. Land values remain high compared to historical levels, but pricing trends now differ greatly by region. Local conditions such as soil quality, water access, and crop performance are playing a larger role in determining value.
"After years of steady growth, we're seeing the farmland market stabilize," said Colton Lacina, senior vice president of real estate operations at Farmers National Company. "This isn't a sign of collapse but a recalibration that reflects current commodity prices, input costs and regional production conditions.'
High-quality farmland continues to perform well in most regions. Properties with dependable irrigation, strong yields, and good access remain in demand. Pastureland and recreational tracts are also attracting buyers, especially in areas with active livestock production or strong hunting interest. However, farms with lower productivity or physical limitations often seeing price pressure.
Farmers remain the most common buyers, but many are proceeding carefully. With ongoing concerns about commodity prices and profitability, farmers are focusing on land that fits their current operations and offers long-term value. Investors, including institutional buyers, are also active and are targeting land with stable rental income and reliable returns.
Regional market activity shows mixed results. Some areas are recording strong auction outcomes, especially where land supply is limited. Other regions are seeing softer bidding when multiple properties are available at the same time. This has created a wider gap between buyer and seller expectations, particularly for lower-quality tracts.
Despite these changes, opportunities still exist for sellers. Accurate pricing, realistic expectations, and professional marketing are critical in today’s environment. Demand for quality farmland continues to outpace supply in many areas, supporting overall market stability.
"Headlines highlighted the $32,000-per-acre sale in northwest Iowa, while little attention was given to the numerous no-sales and expired listings. This reflects a widening gap between buyer and seller expectations," said Thomas Schutter, Area Sales Manager. "Sellers continue to rely on appraisals and comparable sales from the past year, while buyers are increasingly concerned about future risks. Although the $12 billion farm relief package provides temporary help, it doesn't address the long-term challenges ahead."
As 2026 approaches, the farmland market is becoming more selective rather than weaker. Buyers and sellers who understand local conditions and make informed decisions are best positioned to succeed in this evolving agricultural land market.
Photo Credit: istock-alenamozhjer
Categories: National