February 2026 Wallace’s Farmer MarketPlace Extra

I wrote last month that the Iowa farmland market entered 2026 with stable legs. I often get questions about how this stability can exist, given the weak commodity markets and resulting profitability in the country? I have generally attributed the stable market to the low overall volume of sales. Basically, the supply of land available for sale has not yet outpaced demand for purchasing additional land. But I have not always explained the underlying facts.

One of the interesting things about demand for farmland is just how stable it seems to be, as well.  Iowa State data tells us that existing farmers buy 7 out of every 10 farms offered to the market, and investors (local and non-local) buy the balance 3 in 10 farms. This has generally been the case for the past decade, although the numbers for each year may vary by a couple % points one way or another.  Generally, when corn and soybean prices are better, farmers buy an even larger share of farmland.

The core truth about our current farmland market then, is that most of the buyers who continue to compete for land – despite the difficult market conditions – already own other land in their farming operations or investment portfolios.  They are not rookies to the asset class. They know the business, including the risks, and they want to buy more.

The even more amazing metric/fact that Iowa State data points out, is that 84% of Iowa farmland is owned without any mortgage on it.  84%!  So, most of the land you see outside your window is owned free-and-clear of any debt.  That equals a whole lot of wealth and purchasing power. So, despite the short-term margin squeeze in row-crop agriculture in 2024, 2025, and here in early 2026, the farmland market largely peddles on. Certainly, land values are not going up much right now – ISU said Iowa farmland appreciated 0.7% for the 12 months ending December 2025 – but land values also aren’t weak right now either, as seen in the recent sales noted below.

Can Iowa farmland go down in value?  Yes, without question, land can go down in value, just as any asset can.  But, something fundamental in supply of land, demand for land, or both will need to change before the current market is likely to show much meaningful change in direction.

NORTHWEST

Cherokee County:

Located south of Cleghorn, 77 +/- acres recently sold at public auction for $18,200 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 (Corn Suitability Rating index) of 94.8, and equaled $200 per CSR2 point on the tillable acres.

NORTH CENTRAL

Floyd County:

Located northwest of Dougherty, 80 +/- acres recently sold at public auction for $17,100 per acre. The farm consisted of 76 +/- tillable acres with a CSR2 of 85.1, and equaled $211 per CSR2 point on the tillable acres.

NORTHEAST

Delaware County:

Located on the edge of Petersburg, 113 +/- acres recently sold at public auction for $16,100 per acre. The farm consisted of 107 +/- tillable acres with a CSR2 of 68.8, and equaled $247 per CSR2 point on the tillable acres.

WEST CENTRAL

Ida County:

Located west of Holstein, 76 +/- acres recently sold at public auction for $20,500 per acre. The farm consisted of 73 +/- tillable acres with a CSR2 of 87.3, and equaled $244 per CSR2 point on the tillable acres.

CENTRAL

Story County:

Located south of Story City, 61 +/- acres recently sold at public auction for $12,600 per acre. The farm consisted of 60 +/- tillable acres with a CSR2 of 76.4, and equaled $168 per CSR2 point on the tillable acres. Note: This farm was irregularly shaped.

EAST CENTRAL

Cedar County:

Located north of Stanwood, 156 +/- acres recently sold for $19,000 per acre. The farm consisted of 152 +/- tillable acres with a CSR2 of 93.3, and equaled $209 per CSR2 point on the tillable acres.

SOUTHWEST

Fremont County:

Located northwest of Shenandoah, 71 +/- acres recently sold at public auction for $10,850 per acre. The farm consisted of 65 +/- tillable acres with an average CSR2 of 88.7, and equaled $134 per CSR2 point on the tillable acres.

SOUTH CENTRAL

Union County:

Located west of Lorimor, 377 +/- acres recently sold at public auction for $7,900 per acre. The farm consisted of 130 +/- tillable acres with an average CSR2 of 67.8, and the balance of the farm included 200 +/- pasture acres and 47 +/- acres of timber and waste.  

SOUTHEAST

Keokuk County:

Located south of Kinross, 160 +/- acres recently sold for $16,000 per acre. The farm consisted of 159 +/- tillable acres with a CSR2 of 81.1, and equaled $198 per CSR2 point on the tillable acres.

Hensley is president of Hertz Real Estate Services, which compiled this list, but did not handle all sales. Call Hertz at  800-593-5263  or visit hertz.ag.

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