Farm land values are down from their highs in the early 2020s

After a few years of upward pricing, farmland values are starting to cool.

One economist says prices started to peak across farm country in the early 2020s.

“Yes, and that corresponds with that double-digit run-up in land values during that time for a lot of states, specifically the ‘I’ states, with very strong commodity prices, some good yields in a lot of places, and uncertainty in the market post-COVID, and some other things that drove the land prices higher. And the people, this would be families that inherited land, estates that needed to sell the land, or even some investors that wanted to capitalize on those higher prices. They decide to sell, and those prices run up. We saw the same thing leading up to 2012-'13,” said Randy Dickhut.

On average, land listings are down 25 percent from early 2020. Researchers at Farmers National say active farmers continue to be the primary land buyers this year.

Related Stories
Demand for farm loans surged in the first quarter of the year, topping the previous record set in 2016.
Labor Secretary Lori Chavez-DeRemer says the labor program will now be fully under her department, and consolidation will make the program more affordable and efficient for farmers and ranchers.
Roger McEowen with the Washburn School of Law joins us now with the highlights.

LATEST STORIES BY THIS AUTHOR:

Duane Simpson, CEO of the National Council of Farmer Cooperatives (NCFC), joined us in Monday’s Market Day Report to share his perspective on the USDA’s plan and potential impact on producers.
U.S. Farmers Navigate Harvest Pace, Costs, Policy Shifts
Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
Beginning Farmers and Ranchers, Crop Insurance, and a Business Planning Complication
Smaller slaughter numbers across beef and pork signal tighter supplies into late 2025, while record-low veal production highlights ongoing structural changes in the sector.