Reviewing Farmland Valuation Trends

It’s no secret that farmland values have been strong in recent years. After several years of double precision-digit annual gains reported throughout the Midwest, reviewing the longer-term trends is important.

Since 2020, the biggest jump in cropland values has occurred in the Central Plains State. Cropland values increased by 66% in Kansas and 57% in Nebraska. Strong grains also occurred throughout the Great Plains and Corn Belt regions. Every state with data posted an increase, but appreciation was the slowest in the Southeast and Western states.

Over an even longer period, cropland values have appreciated the most in the Northern Great Plains since 2005. Nebraska, South Dakota, and North Dakota all posted average annual gains of more than 9%. Not only is that annual rate large, but those annual gains have played for nearly twenty years.

The data also show the difference in valuation gains since 2005. For example, values have increased much slower in the Eastern Corn Belt, 5.7% in Indiana and 6.1% in Ohio. In the Southeast and Southwest regions, appreciation was often less than 5% annually.

Wrapping it up

There are countless measures and reports of farmland values, but the most recent reveal small declines in farmland values. The adjustment has been small, but it confirms that the boom era has, at least for now, ended. What does 2025 have in store? The combination of falling farm incomes and higher interest rates will be critical to monitor.