Agriculture land market remains resilient amid economic uncertainty

OMAHA, Neb. — Despite ongoing challenges in commodity markets and uncertain farm profitability, agricultural land values remained remarkably stable through mid-2025, according to Farmers National Company.

This resilience is mainly driven by the basic economic principle of supply and demand — there are simply more motivated buyers than willing sellers.

While producers remain the main buyers of ag land, interest from individual and institutional investors cannot be ignored, Farmers National Company noted.

As land values stabilize after reaching peaks within the past five years, investors are increasingly attracted by both annual returns and long-term appreciation.

According to Farm Credit Services of America, benchmark Midwest farmland values have increased 56.9% over the past five years and 38.3% over the past decade, reinforcing land’s appeal as a long-term asset.

Inventory remains limited, with listings down 20% to 25% from the peak in 2020-2021.

Many long-term landowners are choosing to hold onto their properties, recognizing the stability and value appreciation land offers compared to more volatile investments.

Farm profitability will be a key factor affecting land values in the future, said Paul Schadegg, senior vice president of real estate at Farmers National Company.

“The USDA forecasts 2025 net farm income to be the lowest since 2020. This will likely influence producer purchasing power and investor returns, especially as input costs, commodity prices and interest rates fluctuate,” he said.

“While balance sheets generally remain strong, any negative movements in the ag economy could quickly impact the land market.”

Geopolitical developments also influence the market. Trade policies, tariffs and global unrest create uncertainty, impacting both domestic and international markets.

While renegotiated trade agreements may present future opportunities, current tariffs could decrease demand for U.S. agricultural exports as other countries expand their production and infrastructure.

Looking through the end of 2025, those with solid financial positions — both producers and investors — will be best equipped to pursue land purchase opportunities.

During periods of volatility, Farmers National Company sees strong demand for real estate and management services as landowners seek answers in today’s market.

The business successfully marketed more than $450 million in land value in the first half of 2025.

“We have had a strong start to the year and will continue to adapt to the global elements that impact the land value market,” Schadegg said.