Despite ongoing challenges in commodity markets and uncertain farm profitability, ag land values are remaining remarkably stable through mid-2025. Paul Shadegg, Senior Vice President of Real Estate with Farmers National Company, says the explanation comes down to simple economics.

“There’s a huge appetite for ag land in the US from both producers, investors, non-traditional land buyers, and that’s what that’s what’s keeping the train on the tracks. Then that other side of it is the limited supply. And so that supply demand scenario is really what’s holding things strong.”

He says producers are the primary purchasers.

“They are the ones that are a little more aggressive. There’s been, you know, there’s a lot of those guys that have been through the tough times in the 70s and 80s, and they learned a lesson. They said, You know, I’ve got to deploy my cash in smarter ways. And so there’s a lot of those producers out there that have made great decisions, and their pocket might still have some cash in it. And so when the farm next door comes up for sale, or when they want to expand their operation, they can do that.”

While farmland values in general are holding steady nationally, Shadegg does find regional differences…

“We always see a lot of strength and stability in the ‘I’ states, in Iowa, Illinois, Indiana, and there’s pockets there that seem have seen some decreases, as much as 5% and some that are that are pretty flat. When we go into the Dakotas, there’s either a latent effect there, but they’re still seeing some increases as much as 5% pretty general. And so that’s probably the bright spot. And then when we get into those outlying areas, anytime that we see some irrigation water, drought issues, things like that, we’re seeing some depressed values there.”