Frontier Farm Credit releases benchmark farmland values report analyzing market trends and regional variances
Above: Six-month average percentage change in Kansas benchmark farm values.
MANHATTAN, KAN. (January 7, 2025) – Farmland values in eastern Kansas remain stable according to the latest Benchmark Farm Value Trends Report issued by Frontier Farm Credit. While sales activity has slowed, cropland is showing pockets of strength.
Over the last 6 months, the average of the benchmark value changes ranged from -2.8% to 5.7% with an average of 0.9%. The 12-month value changes ranged from -5.1% to 9.5% with an average of 1.7%. The major factors affecting the agricultural real estate market are lower commodity prices, profitability in the cattle market, and limited supply of real estate for sale. Farmers and ranchers continue to be the predominant buyers.
| STATE | 6-Month | 1-Year | 2-Years | 5-Years | 10-Years |
|---|---|---|---|---|---|
| Iowa (21) | -2.80% | -5.10% | -4.80% | 52.60% | 38.60% |
| Kansas (7) | 0.60% | 2.80% | 17.00% | 54.10% | 52.70% |
| Nebraska (18) | -0.60% | -0.40% | 7.30% | 52.80% | 27.10% |
| South Dakota (22) | 5.70% | 9.50% | 18.10% | 64.60% | 40.50% |
| Wyoming (2) | 0.00% | 2.70% | 5.90% | 54.50% | 110.50% |
| Average % Change | 0.90% | 1.70% | 8.00% | 56.6% | 39.7% |
*The chart above shows the average change in values by state based on the twice-a-year appraisals of 70 benchmark farms. | |||||
Benchmark Cropland Value Trends
Kansas cropland benchmark values have increased 1.6% over the most recent six-month period and by 3.6% over the past year. Individually, the value of the Clay County benchmark farm was unchanged in the last half of 2024; the Neosho County benchmark farm increased 0.8%, while in Brown and Miami counties, the benchmarks increased 3.4% and 2.3%, respectively.
Benchmark Cropland Value Trends by County
“While the market remains stable overall, there are instances of significant deviations in sales prices, both above and below expectations,” said Tim Koch, executive vice president of business development for the three collaborating Associations. “Prices above expectations are anomalies and don’t represent the broader trend.”
“While many of today's buyers are well-positioned financially and capable of exceeding expected prices, most sales remain flat,” Koch added. “Buyers are increasingly cautious with their working capital, waiting for the right opportunities. This selectivity is driving a reduction in sales, with buyers focusing on high-quality, strategically located land.”
Interest rates are not expected to have a significant impact on the market, according to Koch. “Margins and availability of capital will play a more crucial role in influencing buyer behavior.”
Addressing pastureland trends, Koch said, “The pastureland market has strengthened in some areas, driven by profitability of the cow-calf sector. However, rising prices may lead some buyers to reduce herd size rather than expand their holdings, reallocating those funds to options with higher earning potential.”
Benchmark Pastureland Value Trends
The three Kansas pasture benchmarks decreased by an average of -0.7% over the past six months and increased 1.9% over the past 12 months. The value for the Wilson County pasture benchmark did not change between July and January, while benchmarks in Jackson and Chase counties declined -0.4% and -1.8%, respectively.
Benchmark Pastureland Value Trends by County
For more details on this report and land values visit: https://www.frontierfarmcredit.com/resources/learning-center/latest-land-values