(NAFB) Farmland values are softening in the Midwest, as agricultural economists say the market is moving in two different directions. The Chicago Fed reports values were flat in the second quarter of 2026, with increases in Illinois and Iowa and decreases in Indiana and Wisconsin.
Meanwhile, a new report in Nebraska shows farmland across all categories down one percent from a year ago. Farmland values are still high, as the state set new records in 2024.
University of Nebraska agricultural economist Jim Jansen said lower crop prices, elevated input costs, and interest rates remain the main pressure points…tape
“Across dryland cropland, without and with irrigation potential, in addition to gravity as well as center pivot irrigated cropland, we’ve seen a slight decline across Nebraska on average. Now, grazing land and hay land – grazing land, tillable and non-tillable, in addition to hay land – we’ve actually seen an increase across the state.”
Jansen calls it a tale of two stories, with the strength in the cattle market contributing to higher values for grazing land and hay land.
Pasture and cow-calf pair rental rates increased about four to five percent. Ag economist Anastasia Meyer of the University of Nebraska said, in many cases, land is holding its value…tape
“Land values when we’re seeing a sale, the really, really great stuff is holding its value. It’s still selling at a really great price. The stuff that’s a little bit more marginal, that’s starting to fall faster. Pasture is a whole different story with the cattle prices right now.”
These ag economists describe the overall market as a modest softening, but not in a sharp decline.
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Audio provided by Steve White, KRVN/Rural Radio Network, Lexington, Nebraska
Audio with Jim Jansen and Anastasia Meyer, both agricultural economists with the University of Nebraska
