KANSAS CITY, Mo. (RFD NEWS) — Agricultural land values across the Tenth Federal Reserve District remained firm in 2025 despite softer farm income and tighter liquidity.
The Kansas City Fed reported cropland values were roughly unchanged from a year earlier, moving about 1 percent overall, while ranchland values increased modestly and reached record levels.
Strength in the cattle sector supported land markets in Oklahoma and the Mountain States — including Colorado, northern New Mexico, and Wyoming — where revenues are more livestock-dependent. In contrast, crop-intensive states such as Kansas, Nebraska, and Missouri saw slight declines in cropland values.
Farm finances continued to deteriorate gradually. About 45 percent of borrowers had current ratios below 1.5, signaling tighter liquidity. Loan demand increased at the fastest pace in nearly a decade, particularly in Missouri and Oklahoma, while repayment rates weakened modestly. Interest rates edged lower late in the year but remained elevated compared to historical averages.
Cash rents declined slightly for cropland but rose for grazing ground, reflecting livestock strength. Bankers noted that cattle profits offset weaker crop margins in many operations.
Economic pressures are continuing to ripple across the farm sector, influencing input decisions, land sales, and rental agreements. Farmers and landowners are carefully monitoring property values and market trends to navigate these challenging times.
Nick Westgerdes with the American Society of Farm Managers & Rural Appraisers (ASFMRA), joined us on Wednesday’s Market Day Report to provide insight on Illinois farmland.
In his interview with RFD NEWS, Westgerdes discussed how farm values are holding up in the region, noting that while demand remains steady in some areas, sellers are exploring a variety of methods to move land in the current economy. He also reviewed 2026 rental rates, highlighting trends in lease negotiations and what farmers can expect as agreements wrap up for the year.
Looking ahead, Westgerdes encouraged attendance at the upcoming Illinois Society of Farm Managers & Rural Appraisers Land Values Conference in April, where producers and landowners can learn more about market conditions, appraisal strategies, and navigating farmland sales.
