Farmland values have stabilized in Iowa, Kansas, Nebraska, South Dakota, and Wyoming, the five states served by Farm Credit Services of America and Frontier Farm Credit. As a whole, benchmark values ticked up an average of 0.07 percent, 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 percent 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 FCS America’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.
“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.
Koch said several years of strong profitability created optimism in the real estate market and helped offset the impact of the Federal Reserve’s rate hikes in late 2022 into 2023. The market continues to benefit from willing buyers competing for limited land. However, 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 percent 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 percent and 5.8 percent 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 percent and 14.8 percent 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 percent in the past six and 7.0 percent 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 percent and 6.5 percent in the past six and 12 months, respectively.
South Dakota: The market shows stability; cropland values are up an average of 1.1 percent and 4.5 percent for the past six and 12 months.
Pasture benchmark values increased an average of 10.4 percent and 14.7 percent for the same periods.
Wyoming: Cropland values increased 4.4 percent and 9.2 percent during the past six and 12 months.
Pastureland is up 1.0 percent and 2.5 percent for the same period.