Key Takeaways:
- Farmland values hold steady through mid-2025 despite commodity price volatility according to Farmers National Company latest report.
- Supply-demand dynamics and limited inventory continue to support land prices
- Investor interest grows as land remains a long-term asset with consistent returns
- USDA forecasts lower 2025 farm income, potentially influencing future demand
- Farmers National Company reports $450M in land marketed during H1 2025
Farmers National Company Highlights Farmland Stability in First Half of 2025
Farmland values in the United States have remained stable through the first half of 2025, according to a mid-year update from Farmers National Company. Despite ongoing pressures from commodity markets and concerns about farm profitability, the agricultural land market has shown resilience, largely supported by constrained supply and continued buyer interest.
Limited listings and long-term confidence in land ownership are among the primary factors helping sustain values. Current inventory is estimated to be down 20–25% from peak levels seen in 2020–2021.
Farmers National Company Notes Growing Interest from Investors
While producers remain the primary purchasers of farmland, Farmers National Company notes a noticeable increase in interest from both individual and institutional investors. As land values level off after significant gains in recent years, many investors see farmland as a reliable asset offering both annual income and long-term appreciation.
Data from Farm Credit Services of America shows that benchmark Midwest farmland values have risen 56.9% over the past five years and 38.3% over the past decade, reinforcing farmland’s reputation as a stable investment option.
Market Conditions and Economic Outlook
According to Paul Schadegg, Senior Vice President of Real Estate at Farmers National Company, several factors could shape the land market in the coming months. “The USDA forecasts 2025 net farm income to be the lowest since 2020. This will likely influence producer purchasing power and investor returns,” said Schadegg. He added that fluctuations in commodity prices, input costs, and interest rates remain key variables.
Geopolitical developments, including trade policies and tariffs, also add to market uncertainty. Potential changes in global demand and the restructuring of trade relationships may influence export markets and agricultural revenue streams.
Farmers National Company Outlook for Second Half of 2025
Looking ahead, Farmers National Company anticipates that buyers with strong financial footing—both producers and investors—will be best positioned to act on available opportunities. During periods of uncertainty, demand for professional land management and real estate services typically increases, as landowners seek informed strategies.
The company reports having marketed more than $450 million in land value during the first six months of 2025. “We have had a strong start to the year and will continue to adapt to the global elements that impact the land value market,” said Schadegg.
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