Farmland values have stabilized in Iowa, Kansas, Nebraska, South Dakota, and Wyoming. A Benchmark Farm Value Trends Report from Farm Credit Service of America and Frontier Farm Credit says benchmark values rose just 0.07 percent.
“The combination of higher interest rates and tighter margins for grain producers is having an impact on cropland values,” says Tim Koch, executive vice president for the two associations that operate as a collaboration. “Several years of strong profitability created optimism in the real estate market and helped offset the impact of the Fed’s rate hikes in 2022 and 2023.”
While buyers seem willing to compete for limited land, falling grain prices are shifting attention to the more challenging economic environment. Iowa, which is normally on the leading edge of market trends, saw land values decline for the first time in five years. Despite that pullback, Iowa’s real estate values are up 60 percent since 2019.