Sellers still face favorable conditions in many areas. Well-priced land that meets buyer expectations continues to receive strong interest. However, success now depends on understanding local demand and choosing effective marketing strategies.
Active farmers remain the largest group of buyers, but they are becoming more cautious. Many are balancing tighter profit margins with long-term ownership goals. Investors also remain active, viewing stabilized prices as an opportunity to purchase quality land at more disciplined values. These buyers focus on lease income, long-term returns, and reliable fundamentals.
Across regions, results are mixed. Parts of the Midwest and Eastern Corn Belt continue to see strong prices for high-quality farmland. Other areas are experiencing softer auction results, especially where multiple listings compete for buyer attention. Pastureland and recreational properties remain attractive, particularly where livestock production and hunting demand are strong.
"Headlines highlighted the $32,000-per-acre sale in northwest Iowa, while little attention was given to the numerous no-sales and expired listings. This reflects a widening gap between buyer and seller expectations," said Thomas Schutter, Area Sales Manager. "Sellers continue to rely on appraisals and comparable sales from the past year, while buyers are increasingly concerned about future risks. Although the $12 billion farm relief package provides temporary help, it doesn't address the long-term challenges ahead."
Overall, farmland demand still exceeds supply, but buyers are more selective. Negotiation, realistic pricing, and professional guidance are now essential. As 2026 begins, the farmland market is not weakening but adjusting to economic realities, making local knowledge and careful decision-making more important than ever.
Photo Credit: gettyimages-alexeyrumyantsev