Local, Regional Trends Big Factors in 2026 Land Values

A Farmers National Company report for 2026 finds that land values are still high historically in the central United States, but current signs indicate a more complex situation driven by local and regional factors rather than nationwide trends. The report notes that this is a new trend for the central U.S. agricultural land market. "After years of steady growth, we're seeing the farmland market stabilize," said Colton Lacina, senior vice president of real estate operations at FNC. "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. 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 said. "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. "This is still a workable window for sellers," Lacina noted. "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. 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 said. "They're targeting land with strong lease potential and reliable income that can support long-term returns." FNC, the nation's leading landowner services provider, anticipates stable U.S. farmland values overall, with ongoing divergence driven by local conditions. Opportunities may emerge in regions with weaker demand, and sellers' success will depend on accurate market insights and timing. "The farmland market isn't weakening; it's becoming more selective," Lacina added. "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." Select Regional Reports East Region: Indiana, Ohio, Michigan, Kentucky Land values across Indiana, Ohio, Michigan, and Kentucky have shown "remarkable resilience and strength" in the latter part of 2025, according to FNC area sales manager Jay Van Gorden. "A strong mix of investor buyers and active farmers has driven competition and kept sale prices for high-quality farmland at record levels. Farmers National has seen multiple sales in the $15,000-$19,000 per acre range in the past few weeks in our Eastern Region for highly tillable, productive soils in strong farming areas," Van Gorden said. Farms with a lower percentage of tillable acres, woodland, and medium-productivity soils in the region are not at record levels, but they still fetch prices near the top of the range for their type, he added. "1031 tax-deferred exchange funds from the sale of development land in urban areas continue to support strong land prices. Additionally, some post-harvest commodity price increases and a limited supply of land for sale relative to interested buyers continue to boost land values," Van Gorden said. Southeastern Region: Texas, Oklahoma, and Arkansas The Southeastern land market remains strong but is "clearly divided," according to FNC area sales manager Philip Leabo. "Land values for high-quality properties that attract institutional investors remain strong. These properties, with solid tenant bases and healthy rents, continue to fetch top dollar," Leabo said. "Conversely, in areas where the local tenant pool is small and rents are lower, land values are under some downward pressure. "Land values for farms with marginal soils, questionable water supplies, and larger non-tillable areas are also seeing weaker demand. Overall, the Southeastern land market remains resilient. Landowners remain optimistic about future demand trends and potential upside." Central Region: Iowa and Southern Minnesota The second half of 2025 was volatile for land values, according to FNC area sales manager Thomas Schutter. "A strong early crop was followed by a record-wet July and heavy disease pressure, leaving corn yields disappointing, while soybeans finished above average in many areas. Despite crop challenges, low supply heading into harvest supported an optimistic short-term outlook and kept prices stable to higher pre-harvest levels. As fall progressed, increased market supply and shifting sentiment exerted downward pressure on prices," Schutter said. The biggest shift occurred in November as the market adjusted quickly. Buyers and sellers navigated the changing conditions, with each sale telling its own story—high-quality farms continued to attract strong interest and sold well, while lower-quality farms often failed to find buyers, Schutter noted. "Headlines highlighted the $32,000-per-acre sale in northwest Iowa, while little attention was given to the numerous no-sales and expired listings. This reflects a widening gap between buyer and seller expectations," Schutter said. "Sellers continue to rely on appraisals and comparable sales from the past year, while buyers are increasingly concerned about future risks. Although the $12 billion farm relief package provides temporary help, it doesn't address the long-term challenges ahead." As 2026 approaches, sustained low commodity prices have drained working capital for another year, heightening pressure on profitability and income expectations.