Farmland values in eastern Kansas were mostly flat in 2024, holding steady at or near the record highs of recent years.
Average land values for benchmark farms and ranches tracked by Frontier Farm Credit rose a modest 0.6% in the final six months of 2024. For the year, values were up 2.8%. The average value for the seven benchmark farms in 2024 was $5,268 per acre.
Frontier Farm Credit has one of the most comprehensive reports on farmland value in the region. The Association appraises its benchmark farms every six months; many other land values reports are based on surveys.
The table below shows the average change in values for the benchmark farms, dating back to 2014. Four of the operations are predominantly cropland. The other three are primarily pasture.
| STATE | 6-Month | 1-Year | 2-Years | 5-Years | 10-Years |
|---|---|---|---|---|---|
| Kansas | 0.6% | 2.8% | 17.0% | 54.1% | 52.7% |
For the first time, Frontier Farm Credit, AgCountry Farm Credit Services and Farm Credit Services of America (FCSAmerica) have released a joint land values report that includes appraisals for 93 benchmark farms and ranches in all or parts of eight states. The Associations, which operate under a collaboration agreement, update appraisals for their respective benchmark farms every January and July.
As a whole, the values for the benchmark farms were stable. But pockets of volatility in the last half of the year signal a changing real estate market as grain margins tighten, buyers become increasingly selective and more land auctions end without a sale.
6-Month Average Benchmark Land Values Change
Iowa, which generally is on the leading edge of farm real estate trends for grain-producing states, saw its first decline in values in five years. South Dakota benefitted from an above-average 2024 harvest and strong supply and demand in the real estate market, while Nebraska and Wyoming saw little change.
Minnesota, North Dakota and Wisconsin, with a combined 17 benchmark farms, also saw no to little change during 2024.
The parentheses in the table below indicate the number of benchmark operations in each state. Most benchmarks are cropland, but pasture or a combination of crop and pasture also are included.
| STATE | 6-Month | 1-Year | 2-Years | 5-Years | 10-Years |
|---|---|---|---|---|---|
| Iowa (21) | -2.80% | -5.10% | -4.80% | 52.60% | 38.60% |
| Minnesota (10) | 1.60% | 1.60% | 4.70% | 80.90% | 58.70% |
| Nebraska (18) | -0.60% | -0.40% | 7.30% | 52.80% | 27.10% |
| North Dakota (11) | 0.80% | 0.80% | 8.30% | 73.20% | 71.40% |
| South Dakota (22) | 5.70% | 9.50% | 18.10% | 64.60% | 40.50% |
| Wisconsin (2) | 0.00% | 0.00% | 14.80% | 30.80% | 38.00% |
| Wyoming (2) | 0.00% | 2.70% | 5.90% | 54.50% | 110.50% |
Farm Real Estate Market
Today’s real estate market is a changed landscape. Interest rates are more historically normal than a couple of years ago, when rates were near or at record lows. Inflation, while down, has proved stubborn, permanently increasing input costs. And grain prices have declined, squeezing on-farm margins.
"Balance sheets are tightening as the farm economy enters a down cycle, but producers remain in a good financial position."
Interest rates are not expected to have a significant impact on the market, Koch said. “Margins and availability of capital will play a more crucial role in influencing buyer behavior.”
Signs of a Downturn
While the market is stable overall, Koch noted “instances of significant deviations in sales prices, both above and below expectations.”
High quality ground in the right location continued to sell for higher-than-expected prices in 2024. “When it’s a really good farm and two neighbors with money decide they want it,” Koch said, “you still saw farms selling for more than expected.”
The market likely will see pockets of near to record high land sale prices into 2025, he said. But these sales will be the anomaly.
Buyers generally are also using appropriate levels of debt to retain adequate working capital for the size, risk and scope of their farm. Rather than an all-cash purchases, today’s buyers tend to invest enough cash to keep their loan payments to a sustainable level.
The examples below illustrate the impact that rising interest rates have had on lending decisions.
In both scenarios, the ground costs $10,000 per acre, financing is amortized over 30 years and the buyer wants to keep payments to $300 per acre.
| Interest rate: | 4.0% |
| Down payment: | $4,800 |
| Frontier Farm Credit financing: | $5,200 |
| Payment: | $300 per acre |
| Interest rate: | 7.5% |
| Down payment: | $6,500 |
| Frontier Farm Credit financing: | $3,500 |
| Payment: | $300 per acre |
Cropland vs. Pastureland Values
In addition to overall trends, Frontier Farm Credit reports values separately for cropland and pasture.
Benchmark Cropland Values
The average value for the four benchmark cropland farms increased 1.6% and 3.6% in the last six and 12 months, respectively. 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.
The graph below shows the change in values for each cropland farm for the past 10 years.
Benchmark Pasture/Ranch Values
The value for the three pasture benchmarks decreased an average of -0.7% in the final half of 2024 but was up 1.9% for the year. 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.
Farmland Sales and Prices
Frontier Farm Credit reports actual land sales and final sale prices separate from its benchmark farmland values. The information below likely will change some as end-of-year sales are finalized and reported.
The average sale price for cropland in eastern Kansas in 2024 was $6,311 per acre, an increase of 10.1% from 2023. In the fourth quarter of 2024, the average per-acre price reached $7,292.
Realtor sales continue to be the primary method of sale at 46.6%. Private sales accounted for 28.1% of all sales, increasing slightly compared to 2023. Public land auctions also made gains, up 5% from 2023. However, the number of actual tracts sold at public auction declined 17%.
Register for our upcoming webinar to hear the latest on the land values and what they mean for producers in 2025.
