Farm Credit Services of America and Frontier Farm Credit release benchmark farmland values report showing trends and market changes
OMAHA, Neb. (July 17, 2024) - Farmland values have stabilized in Iowa, Kansas, Nebraska, South Dakota and Wyoming, the five states served by Farm Credit Services of America (FCSAmerica) and Frontier Farm Credit. As a whole, benchmark values ticked up an average of 0.07%, according to the latest Benchmark Farm Value Trends Report jointly issued by the two Associations.
Since January 2024, land values made modest gains in eastern Kansas, Nebraska, South Dakota and Wyoming. In Iowa, which generally is on the leading edge of market trends, values declined for the first time in five years. Despite the pullback, Iowa’s real estate values are up nearly 60% since 2019. Across all five states, values remain at or near record levels.
The chart below 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. The number of benchmark farms in each state is noted in parentheses.
State | Six-Month Change | One-Year Change | Two-Year Change | Five-Year Change | Ten-Year Change |
|---|---|---|---|---|---|
Iowa (21) | -2.4% | -2.4% | 1.4% | 58.3% | 34% |
Kansas (7) | 2.2% | 9.6% | 21.4% | 51.7% | 74.9% |
Nebraska (18) | 0.2% | 4.7% | 13.5% | 49.9% | 25% |
South Dakota (22) | 3.6% | 6.3% | 21% | 53.3% | 35% |
Wyoming (2) | 2.7% | 5.1% | 19% | 57.8% | 112.7% |
“The combination of higher interest rates and tighter margins for grain producers is having an impact on cropland values,” said Tim Koch, executive vice president of business development for the two Associations, which operate as part of a collaboration.
Several years of strong profitability created optimism in the real estate market and helped to offset the impact of the Federal Reserve’s rate hikes in late 2022 into 2023, Koch said. The market continues to benefit from willing buyers competing for limited land. But as grain prices have fallen, attention is shifting to a more challenging economic environment.
Below is a state-by-state look at benchmark values. The percentage change is based on puritan benchmark farms, or those that are either exclusively cropland or pasture. Of the 70 benchmark farms, 55 are puritan cropland or pasture. None of the Iowa benchmark farms are puritan pasture ground.
Iowa: Values for cropland have shown an average decline -3.6% for both the past six and 12 months. The real estate market has been relatively stable to slightly decreasing since 2022.
Kansas: Cropland values in the eastern part of Kansas served by Frontier Farm Credit rose an average of 1.9% and 5.8% during the past six and 12 months, respectively, pointing to stable values.
Pasture values, supported by profitability in the cow-calf sector, are up an average of 2.7% and 14.8% for the same period. The demand for pasture remains strong and Flint Hills pasture continues to show a steady increase.
Nebraska: Cropland values increased an average of 0.5% in the past 6 and 4.8% in the past 12 months. The market is relatively stable, with continued strength for top quality cropland.
Pasture benchmark values increased an average of 0.4% and 6.5% in the past six and 12 months, respectively.
South Dakota: The market shows stability; cropland values up an average of 1.1% and 4.5% for the past six and 12 months.
Pasture benchmark values increased an average of 10.4% and 14.7% for the same periods.
Wyoming: Cropland values increased 4.4% and 9.2% during the past six and 12 months.
Pastureland is up 1.0% and 2.5% for the same period.
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About Farm Credit Services of America
Farm Credit Services of America is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. With nearly $43 billion in assets and $7.7 billion in members’ equity, FCSAmerica is one of the region’s leading providers of credit and insurance services to farmers, ranchers, agribusiness and rural residents in Iowa, Nebraska, South Dakota and Wyoming. Learn more at fcsamerica.com.
About Frontier Farm Credit
Frontier Farm Credit in eastern Kansas is a customer-owned financial cooperative proud to finance the growth of rural America, including the special needs of young and beginning producers. The Association has $3 billion in assets and $592 million in members’ equity. Learn more at frontierfarmcredit.com.
