Farm Credit Associations release benchmark farmland values report analyzing market trends and regional variances
Above: Six-month average benchmark land values change
OMAHA, Neb. (January 7, 2025) – Farmland values remain stable across Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming, the eight states served by AgCountry Farm Credit Services (AgCountry), Farm Credit Services of America (FCSAmerica) and Frontier Farm Credit. While sales activity has slowed, cropland is showing pockets of strength, according to the latest Benchmark Farm Value Trends Report jointly issued by the collaborating Associations.
Over the last six months, the average of the benchmark value changes ranged from -2.8% to 5.7% with an overall average of 0.9%. The 12-month value changes ranged from -5.1% to 9.5% with an overall average of 1.6%. The major factors affecting the agricultural real estate market are lower commodity prices, profitability in the cattle market and limited supply of real estate for sale. Farmers and ranchers continue to be the predominant buyers.
| STATE | 6-Month | 1-Year | 2-Years | 5-Years | 10-Years |
|---|---|---|---|---|---|
| Iowa (21) | -2.80% | -5.10% | -4.80% | 52.60% | 38.60% |
| Kansas (7) | 0.60% | 2.80% | 17.00% | 54.10% | 52.70% |
| Minnesota (10) | 1.60% | 1.60% | 4.70% | 80.90% | 58.70% |
| Nebraska (18) | -0.60% | -0.40% | 7.30% | 52.80% | 27.10% |
| North Dakota (11) | 0.80% | 0.80% | 8.30% | 73.20% | 71.40% |
| South Dakota (22) | 5.70% | 9.50% | 18.10% | 64.60% | 40.50% |
| Wisconsin (2) | 0.00% | 0.00% | 14.80% | 30.80% | 38.00% |
| Wyoming (2) | 0.00% | 2.70% | 5.90% | 54.50% | 110.50% |
| Average % Change | 0.90% | 1.60% | 7.80% | 60.7% | 45.5% |
*The chart above shows the average change in values by state based on FCSAmerica’s and Frontier Farm Credit’s twice-a-year appraisals of 70 benchmark farms. In January 2025, benchmark farms in Minnesota, North Dakota and Wisconsin (AgCountry) were added. Previously, these states had reported benchmarks on an annual basis (July 1). The July values of the respective year are utilized for January trending purposes. | |||||
“While the market remains stable overall, there are instances of significant deviations in sales prices, both above and below expectations,” said Tim Koch, executive vice president of business development for the three collaborating Associations. “Prices above expectations are anomalies and don't represent the broader trend.”
“While many of today's buyers are well-positioned financially and capable of exceeding expected prices, most sales remain flat,” Koch added. “Buyers are increasingly cautious with their working capital, waiting for the right opportunities. This selectivity is driving a reduction in sales, with buyers focusing on high-quality, strategically located land.”
Interest rates are not expected to have a significant impact on the market, according to Koch. “Margins and availability of capital will play a more crucial role in influencing buyer behavior.”
Addressing pastureland trends, Koch said: “The pastureland market has strengthened in some areas, driven by profitability of the cow-calf sector. However, rising prices may lead some buyers to reduce herd sizes rather than expand their holdings, reallocating those funds to options with higher earning potential.”
State-by-State Cropland and Pastureland Benchmarks
Below is a state-by-state summary of benchmark values for cropland and pastureland over the past six and 12 months.
- Iowa: Cropland values decreased -3.4% over the past six months and -6.9% over the past 12 months.
- Kansas: Values for cropland increased 1.6% over the most recent six-month period, and by 3.6% over the past year. Pastureland values rose by 1.9% over the last 12 months.
- Minnesota: Cropland values were relatively stable with changes from -4.9% to 0.0%.
- Nebraska: Over the last six months, cropland values decreased -0.6% and -0.2% over the last 12 months. Pastureland values saw a modest increase of 0.4% over 12 months.
- North Dakota: Cropland values rose by 1% over the past six and 12 months. Pastureland values remained unchanged over the past year.
- South Dakota: Values for cropland increased 2.5% over the past six months and 3.6% over the past year. Pastureland in the state showed the strongest growth across the Associations, rising by 10.4% over six months and 21.6% over 12 months.
- Wisconsin: Cropland values remained unchanged over the past six and 12 months.
- Wyoming: Cropland values were stable over the past 6 months and increased 4.4% over the past year. Pastureland values rose by 1% over 12 months.
For more information on this report and land values, visit https://www.fcsamerica.com/resources/learning-center/latest-land-values.
