Pasture and ranchland values were driven by high demand and limited supply, with South Dakota experiencing a significant increase of 12.2% since July 2022, while Wyoming saw values rise by 15.5% year-over-year. In contrast, Nebraska pasture values showed a slight decline.
Despite successive interest rate hikes and regional drought, all agricultural land types continue to maintain record-high values. The market has demonstrated resilience in the face of challenges, thanks to the strong profitability and financial health of the agriculture sector.
Looking ahead, tighter profit margins resulting from higher input costs and lower commodity prices may lead to a flattening of land values, with some areas possibly experiencing a slight decline. However, the overall financial strength of producers, coupled with ample liquidity on farm balance sheets, is expected to sustain activity in the real estate market.