Farmland values were mostly flat in 2024, holding steady at or near the record highs of recent years. But pockets of volatility in the real estate market in last half of the year signal a changing landscape as grain margins tighten, buyers become increasingly selective and more land auctions end without a sale.
Averaged across the four states served by Farm Credit Services of America (FCSAmerica), land values rose a modest 0.9% in the last half of 2024 and 1.6% for the year.
This slight uptick was largely attributable to one state, South Dakota, where producer balance sheets benefitted from above-average yields.
Iowa land values, by comparison, declined for the first time in five years. Iowa generally is on the leading edge of trends in the real estate market.
Nebraska’s and Wyoming’s average land values were largely unchanged, although Wyoming market trends are difficult to identify because of limited sales activity.
FCSAmerica has the longest running and most comprehensive report on agricultural real estate values in its territory. The Association appraises its 63 benchmark farms every six months; many other land values reports are based on surveys. Learn more about how FCSAmerica reports land values.
The table below shows the average change in values for the benchmark farms, dating back to 2014. The parentheses indicate the number of benchmark operations in each state. Most benchmarks are cropland, but pasture or a combination of crop and pasture also are included.
| STATE | 6-Month | 1-Year | 2-Years | 5-Years | 10-Years |
|---|---|---|---|---|---|
| Iowa (21) | -2.80% | -5.10% | -4.80% | 52.60% | 38.60% |
| Nebraska (18) | -0.60% | -0.40% | 7.30% | 52.80% | 27.10% |
| South Dakota (22) | 5.70% | 9.50% | 18.10% | 64.60% | 40.50% |
| Wyoming (2) | 0.00% | 2.70% | 5.90% | 54.50% | 110.50% |
| Average Change (63) | 0.90% | 1.60% | 7.00% | 56.90% | 38.30% |
| Average per-acre $ (63) | $8,316 | $8,551 | $8,299 | $5,383 | $6,399 |
For the first time, FCSAmerica, AgCountry Farm Credit Services and Frontier Farm Credit have released a joint land values report that includes appraisals for 93 benchmark farms and ranches in all or parts of eight states. The Associations, which operate under a collaboration agreement, update appraisals for their respective benchmark farms every January and July.
6-Month Average Benchmark Land Values Change
In eastern Kansas, land values increased an average of 0.6% and 2.8% in the last half of 2024 and for the year, respectively. Minnesota, North Dakota and Wisconsin, with a combined 17 benchmark farms, saw no to little change during 2024.
| STATE | 6-Month | 1-Year | 2-Years | 5-Years | 10-Years |
|---|---|---|---|---|---|
| Kansas (7) | 0.60% | 2.80% | 17.00% | 54.10% | 52.70% |
| Minnesota (10) | 1.60% | 1.60% | 4.70% | 80.90% | 58.70% |
| North Dakota (11) | 0.80% | 0.80% | 8.30% | 73.20% | 71.40% |
| Wisconsin (2) | 0.00% | 0.00% | 14.80% | 30.80% | 38.00% |
Farm Real Estate Market
Today’s real estate market is a changed landscape. Interest rates are more historically normal than a couple of years ago, when rates were near or at record lows. Inflation, while down, has proved stubborn, permanently increasing input costs. And grain prices have declined, squeezing on-farm margins.
"Balance sheets are tightening as the farm economy enters a down cycle, but producers remain in a good financial position."
Jim Knuth, senior vice president of lending in Iowa, said a softening of land values is to be expected in a compressed-margin environment, recalling that after the ethanol boom of 2012 and 2013, land values dropped for three consecutive years for an overall decline of 22% to 25%.
The surprise as agriculture enters another downturn “is how resilient land values have been.”
“The amount of cash still out there and the strength of balance sheets allow buyers to be both ‘in the market’ and fairly aggressive,” Knuth said.
Interest rates are not expected to have a significant impact on the market, Koch said. “Margins and availability of capital will play a more crucial role in influencing buyer behavior.”
Signs of a Downturn
While the market is stable overall, Koch noted “instances of significant deviations in sales prices, both above and below expectations.”
Koch noted that while the real estate market currently is stable, “there are indications that we are headed toward a bit of a downturn.”
High quality ground in the right location continued to sell for higher-than-expected prices in 2024. “When it’s a really good farm and two neighbors with money decide they want it,” Koch said, “you still saw farms selling for more than expected.”
The market likely will see pockets of near to record high land sale prices into 2025, he said. But these sales will be the anomaly.
Knuth said buyers also are using appropriate levels of debt to retain adequate working capital for the size, risk and scope of their farm. Rather than an all-cash purchases, today’s buyers tend to invest enough cash to keep their loan payments to a sustainable level.
The examples below illustrate the impact that rising interest rates have had on lending decisions.
In both scenarios, the ground costs $10,000 per acre, financing is amortized over 30 years and the buyer wants to keep payments to $300 per acre.
| Interest rate: | 4.0% |
| Down payment: | $4,800 |
| FCSAmerica financing: | $5,200 |
| Payment: | $300 per acre |
| Interest rate: | 7.5% |
| Down payment: | $6,500 |
| FCSAmerica financing: | $3,500 |
| Payment: | $300 per acre |
Cropland vs. Pastureland Values
While profitability is down for grain, the cow-calf industry continues to benefit from strong prices and demand. Values for pasture, in turn, strengthened in some areas in 2024, with South Dakota showing the greatest gain.
FCSAmerica’s benchmark report includes eight pasture ranches and 40 cropland farms. The remaining 22 are a mix of pasture and cropland.
The graphs below show the changes in values for those operations that are primarily cropland or pasture.
Benchmark Cropland Value Changes
1-Year Benchmark Cropland Value Change by State
Benchmark Pasture/Ranch Value Changes
1-Year Benchmark Pasture/Ranch Value Changes by State
Farmland Sales and Prices
Land values have benefitted from several years of active buyers competing for limited availability of land. This trend continued into 2024 in much of FCSAmerica’s territory.
However, Koch said, “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.”
In Iowa and Nebraska, sales were down significantly. Average per-acre sale prices were more of a mixed bag. The state-by-state information below is based on actual land sales data; FCSAmerica reports this information separate from its benchmark farmland report.
Iowa farmland sales: The average price for farmland in 2024 was $12,524 per acre, a drop of 2.66% from 2023. In the fourth quarter alone, the average price for unimproved cropland was $12,320 per acre.
The number of tracts sold at public land auctions – which accounted for 54% of all sales in 2024 – dipped 21% from the previous year. Total sales, including private and realtor, dropped nearly 19%.
Iowa has seen an uptick in no-sale auctions in the past two years – 5% and 4.5% of all auctions in 2023 and 2024, respectively. This rate of no-sales has not been seen since 2014 and 2015.
Nebraska farmland sales: The average price for dryland cropland in 2024 was $6,914 per acre, an increase of 8% compared to 2023. Sales were down 30.3%.
The average price for irrigated cropland declined 1.5% to $9,287 per acre. Like dryland, the number of irrigated sales dropped significantly – 30.6% year over year.
South Dakota farmland sales: The average price for dryland cropland during the fourth quarter of 2024 was $8,215 per acre, the highest average price on record. The average price for the full 12 months was $7,612 per acre, up 8.4% compared to 2023.
Unlike the other states in FCSAmerica’s territory, sale numbers were more consistent with 2023 – down 1.3% for the year. Public land auctions were up 4% compared to 2023, and accounted for more than 43% of all sales, an all-time high for South Dakota.
Jason Edleman, senior vice president for lending in the state, noted that several factors likely contributed to a significant uptick in auctions in the fourth quarter of 2024, including retirements, concern about higher taxes on proceeds in 2025 and the desire to sell for top dollar and invest it back into ground that better suits their needs.
“I was talking to one of my financial officers and he said he has three areas of buyers and sellers. You have an auction that gets listed in the newspaper and (potential buyers) are coming to him saying they have to get this piece bought and locked in before the auction because they think the market is going higher.”
“Then there are the buyers at an auction, after which others see a sale price of $12,000 an acre, and they are saying, ‘I am going to sell mine, too.’ Or ‘I’m going to talk to my people who are renting my ground to try to make a sale happen.’ “
Edleman said while producers in many areas of South Dakota busheled through 2024’s lower prices, he expects margins to remain tight, which likely will lead to a softer real estate market in the state. When that happens, he said, public land auctions tend to fall some, and private listings increase.
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