By Jamie Martin
Agricultural land values have shown remarkable resilience through mid-2025, maintaining stability despite economic uncertainties and fluctuating farm profitability, according to Farmers National Company. This stability is driven by supply and demand dynamics, where motivated buyers outnumber willing sellers.
While producers remain the primary buyers of agricultural land, interest from institutional and individual investors has grown.
Over the past five years, Midwest farmland values have surged by 56.9%, and 38.3% over the past decade, as reported by Farm Credit Services of America. The appeal of land as a long-term asset is reinforced by these consistent increases in value.
Inventory remains tight, with listings down by 20–25% from the peak years of 2020–2021. Many long-term landowners are choosing to hold on to their properties, recognizing the value appreciation and stability of land compared to more volatile investments.
Paul Schadegg, Senior Vice President of Real Estate at Farmers National Company, highlighted that farm profitability will play a crucial role in shaping land values going forward. He stated, "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."
Geopolitical factors also contribute to the uncertainty in the market. Trade policies, tariffs, and global unrest create challenges, impacting both domestic and international agricultural markets. Renegotiated trade agreements may open new opportunities, but current tariffs could hinder U.S. agricultural exports, affecting demand for U.S. farmland.
Looking ahead to the second half of 2025, financially stable producers and investors are best positioned to take advantage of any land purchase opportunities that arise.
Farmers National Company has already marketed more than $450 million in land value in the first half of 2025. Schadegg remarked, "We have had a strong start to the year and will continue to adapt to the global elements that impact the land value market."
Photo Credit: istock-alenamozhjer
Categories: National