The U.S. agricultural land market is shifting after years of steady growth, according to Omaha-based Farmers National Company. Although land values are still high historically, current signs indicate a more complex situation driven by local and regional factors rather than nationwide trends.
“After years of steady growth, we’re seeing the farmland market stabilize,” says Colton Lacina, senior vice president of real estate operations. “This isn’t a sign of collapse but a recalibration that reflects current commodity prices, input costs and regional production conditions.’
Farmland demand now varies widely by location, he comments. Areas with high crop yields, diversified farms and dependable groundwater continue to attract buyers and maintain steady values. Regions facing commodity price pressure, lower yields or limited alternative income sources are seeing lower demand.
“Farmland values are increasingly determined locally, sometimes down to the township,” Lacina observes. “Buyers are carefully assessing soil quality, the percentage of tillable acres, water access and how a parcel fits into their current operations. Those details matter more than ever.”
Despite mixed signals, market conditions remain favorable for many sellers. Farmland remains a resilient, long-term asset, and well-priced properties are attracting strong interest, he notes.
“This is still a workable window for sellers,” Lacina states. “The key is understanding current local demand and choosing the right approach to bring land to market. Sellers who partner with experienced local land professionals often see better results because they’re aligned with how buyers think today.”
The makeup of buyers remains steady, but their strategies are changing. Active farmers remain the largest group of buyers, — yet many are more cautious, weighing profitability concerns against long-term ownership goals. They focus on high-quality land within their established areas, he continues.
Investor interest from both local and institutional buyers remains steady. Many view the moderation in land values as an opportunity to enter the market at more disciplined prices.
“Investor buyers are focused on fundamentals,” Lacina says. “They’re targeting land with strong lease potential and reliable income that can support long-term returns.”
Farmers National Company anticipates stable U.S. farmland values overall, with ongoing divergence driven by local conditions. Opportunities may emerge in regions with weaker demand and seller success will depend on accurate market insights and timing.
“The farmland market isn’t weakening; it’s becoming more selective,” he adds. “Whether buying or selling, the advantage will go to those who understand their local market and work with professionals who live and breathe those nuances daily.”