Farmland Market Remains Stable Despite Economic and Crop Pressures

By Andi Anderson

As the first quarter of 2025 ends, farmland values remain mostly stable or slightly lower across many regions, even with rising input costs, low grain prices, and global economic uncertainties.

The agriculture economy continues to face pressure from changing commodity markets, trade issues, and high interest rates.

Reports from various Federal Reserve Districts show that cropland values were largely flat at the end of 2024, with slight increases in areas like the Minneapolis District. Development pressure and a strong cattle market supported land values, especially in the Dallas region.

Higher quality cropland saw the largest decline, with auction prices still strong but slightly below record highs. Pasture and grazing land, supported by strong beef markets, saw continued price growth.

The number of farmland sales in 2024 was similar or slightly lower than in 2023. Auction sales remained common, though sealed bids gained popularity in areas with fewer buyers. Farmers continued to be the main buyers, purchasing up to 75% of farmland sold.

Despite lower crop incomes, many farmers still sought strategic land purchases. Investor activity was moderate, though some are returning to farmland as a secure, inflation-resistant investment.

Land supply remains limited, supporting stable values. Many landowners are choosing to hold land rather than sell in uncertain times. This supply-demand balance has helped prevent significant value drops.

While negative factors exist, including falling crop profits and global trade tensions, the steady demand and limited supply have kept the farmland market firm. Farmland continues to be viewed as a reliable long-term investment, helping stabilize land values in early 2025.

Photo Credit: gettyimages-shotbydave