Land prices show resilience in early 2026

WABASH, Ind. — Farmland values remain resilient in spite of a cooling agricultural economy, according to the latest installment of the Maximizing Your Farmland Series presented by Halderman Real Estate Services.

Despite concerns over a potential downturn, Halderman reported that the first quarter of 2026 has remained surprisingly strong.

While commodity prices for corn and soybeans have retreated to break-even levels and input costs such as fertilizer and fuel remain high, farmland continues to be viewed as a “safe haven” asset.

Halderman noted that while the Weighted Average Productivity Index, a metric for pricing land, showed some softening in the last month, the average price for 2026 is still higher than the 2025 average.

This sustained value is driven by a lack of supply and the asset’s historical performance as a hedge against inflation.

The core of the webinar discussion centered on the concept of “highest and best use” of farmland.

“If I look at a property, my first question is what can I do to make that property better and maximize its long-term value? And that’s highest and best use,” said Howard Halderman, president of Halderman Real Estate Services.

“Most of the farms that we’re managing don’t have a higher and better use for residential or alternative development — 99% of them probably don’t, but they all have an opportunity to be better properties.”

Ideas For Under-Performing Farmland

1. Infrastructure: Investing in tile drainage, irrigation or grain storage to make the land more attractive to high-end operators.

2. Specialty crops: Switching from commodity corn to high-value crops like seed corn, tomatoes and so forth.

3. Conservation and recreation: For marginal land that floods frequently, the highest and best use may be the Wetlands Reserve Program or leasing the land for hunting rights.

The “train coming down the tracks” is data centers. Tech companies are scouring the Corn Belt for land that may be suitable for data centers.

They are willing to pay a premium for land that has access to electrical voltage to sustain the centers.

Watch the full webinar at tinyurl.com/Maximizing-Your-Farmland.