Farmland Values Update - Summer 2026

Does it seem like the world is spinning faster than normal right now? Mideast wars. Deposed dictators. Wild stock market swings. Social-media hysterics. AI everything. If you allow it, the 24-hour news cycle can steal your peace.

At Hertz Farm Management, we’re often asked how farmland values are holding up amid all the chaos? Our short answer, in contrast to the volatility dominating headlines, is that the farmland market has remained steady to the point that some might even call it boring.

Our longer answer, commodity prices remain low and unexciting, but this tight margin environment is not new. And most Midwestern farmers have adjusted and are holding it together. At the same time, the supply of land offered for sale remains limited. For higher-quality farms, a small group of local buyers continues to compete, alongside investors who still value farmland’s long-term fundamentals. Interest rates have also held within a relatively narrow range, offering little in the way of a major market shift. Taken together, these factors help explain why land prices have remained stable, even in a weaker ag economy.

Iowa Holds Steady

The REALTORS® Land Institute – Iowa Chapter recently shared the results of their latest land values survey. From September 2025 to March 2026, the average price for Iowa farmland increased by 1.3%. Iowa farmland has demonstrated resilience over the past 12 months, posting a net 0.3% gain after a brief 1.0% dip in the prior period (March 2025-September 2025). Survey respondents identified Commodity Prices as the leading factor driving the land market, followed by the supply of land and interest rates.

Illinois Choppy-Sideways

According to the annual survey conducted by the Illinois Society of Professional Farm Managers and Rural Appraisers, Illinois farmland values largely held steady in 2025, with “Excellent” quality land seeing a modest 3% decline while “Good” and “Average” ground remained flat and “Fair” ground edged up 2%. Further, from the same survey, a majority of respondents — 61% — are expecting farmland prices to decline in 2026. When asked about the longer-term outlook, however, most respondents anticipate values will increase over the next five years, suggesting the current softness is viewed as a pause rather than a prolonged downturn. Despite near-term uncertainty, prices remain well above historical averages, with gains of roughly 49-54% since 2020.

Nebraska Cropland Softens

According to the 2026 Nebraska Farm Real Estate Market Survey, conducted by the University of Nebraska-Lincoln, the average value of agricultural land in Nebraska fell 1% over the past year, marking the second consecutive annual decline following record highs in 2024. The story divides even more sharply by land type, however, with cropland values down 1-3% statewide while grazing land rose as much as 7%, buoyed by strong cattle prices. Survey respondents cited lower crop prices, elevated input costs, and high interest rates as the primary headwinds for cropland values.

Minnesota Remains Resilient

Land values and rents were mixed across the Minneapolis Federal Reserve District, with modest increases in non-irrigated cropland prices and ranchland rents, while irrigated land rents declined. Despite relative stability, the outlook among lenders in the Minneapolis District remains cautious, with 64% expecting farm incomes to decrease in the year ahead.

What This Means for Midwest Landowners

For landowners across Corn Belt, today’s market environment reinforces a few key themes:

• Limited land supply continues to support values
• Buyer depth for quality farms remains solid, even with tighter margins
• Farmland continues to be viewed as a desirable long-term, income-producing asset

Looking Ahead

As mentioned in the opening, much of today’s world feels volatile. In contrast, the Midwestern farmland market continues to be different. And until the fundamentals shift, whether that’s an increase in land supply or a meaningful change in buyer demand, Midwestern farmland values are likely to continue on a sideways to modestly higher trajectory.

At Hertz Farm Management, our view hasn’t changed. We see most decisions being made today based around long-term positioning rather than short-term market timing. In tighter-margin years where appreciation may be limited, farmland continues to provide stable income and long-term value for landowners who are willing to stay patient and focused on the long game.