Farmland Values Resilient Amid Tight Farm Finances

Agricultural lenders report resilient farmland values across Federal Reserve Districts across the Midwest and Plains states. Factors such as higher input costs and drought were offset by government payments and strong cattle prices. As illustrated in Chart 1, the average value of non-irrigated cropland increased across the districts by about 3%, ranging from up 7.8% in the Dallas district to unchanged in the Minneapolis Federal Reserve district. Land values remained near record levels in most regions in the first quarter of 2026, when the survey was conducted.

In the Chicago district, land value trends were more variable, with Indiana and Wisconsin posting strong single-digit year-over-year gains, while Iowa farmland was slightly up and Illinois’ farmland was slightly down.

Steady farmland values in the second quarter of 2026 was expected by 80% of the ag lenders surveyed across the district, although lenders see operational pressures. An Iowa lender responding to the survey reported, “cash flow projections for many operations are at or below breakeven for 2026 and many borrowers are using up working capital to fund those cash flow shortfalls.”

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