By Scout Nelson
Farmland prices have stabilized in Iowa, Kansas, Nebraska, South Dakota, and Wyoming, as reported by Farm Credit Services of America (FCSAmerica) and Frontier Farm Credit. Benchmark values increased by an average of 0.07%.
Since January 2024, modest gains in land values were observed in eastern Kansas, Nebraska, South Dakota, and Wyoming. Iowa saw a decline in values for the first time in five years, though real estate values remain nearly 60% higher than in 2019. Values in all five states are at or near record highs.
State-by-State Breakdown
Iowa: Cropland values decreased by an average of 3.6% over the past six and 12 months. The market has been stable to slightly declining since 2022.
Kansas: Eastern Kansas cropland values rose by 1.9% and 5.8% over the past six and 12 months, respectively. Pasture values increased by 2.7% and 14.8% over the same periods, driven by the cow-calf sector's profitability.
Nebraska: Cropland values grew by 0.5% in the past six months and 7.0% in the past 12 months. Pasture values increased by 0.4% and 6.5% over the same periods, indicating market stability.
South Dakota: Cropland values increased by 1.1% and 4.5% over the past six and 12 months. Pasture values saw significant increases of 10.4% and 14.7% over the same periods.
Wyoming: Cropland values rose by 4.4% and 9.2% over the past six and 12 months. Pasture values increased by 1.0% and 2.5% over the same periods.
Economic Factors
The combination of higher interest rates and tighter margins for grain producers is impacting cropland values. Despite optimism from strong profitability in recent years, falling grain prices are contributing to a more challenging economic environment.
For more information on farmland values and agricultural trends, visit FCSAmerica and Frontier Farm Credit’s websites.
Photo Credit: gettyimages-sizsus
Categories: Nebraska, Business, Crops