What the Data Is Telling Us About Farmland Markets in 2024

Data is everywhere and when compiled in one place – can help you make informed decisions. When making farmland investments, seeing a holistic picture is crucial when weighing the pros and cons. Our Land Locator tool can help with this process.

Compeer Financial’s appraisal team is deeply involved in agriculture and tracks land value trends across Illinois, Minnesota and Wisconsin. This information helps us better understand the market and support farmers, investors and rural community members in making informed decisions.

What We’re Seeing in Farmland Trends: Reduced Transactions, Stable Prices

Over the past year, land sales have declined by approximately 20%. While fewer transactions might typically signal volatility, reduced supply has actually helped maintain stable land values, even in the face of economic pressures.

Many producers have benefited from strong working capital thanks to previous years of profitability. This resilience has helped stabilize demand, particularly for high-quality and efficient-to-farm land.

Recreational Land Market on the Rise

Recreational land—properties for hunting, fishing or rural living—has seen consistent demand. This reflects a broader trend of increased interest in outdoor spaces and lifestyle-focused investments.

Regional Highlights

• Illinois: High-quality land has seen slight declines from its 2023 peak, but moderate- and low-quality land values remain steady. Recreational properties continue to appreciate, reflecting strong interest in rural lifestyle opportunities in the state.
• Minnesota: While high-quality farmland has shown mixed trends, mid-tier properties have appreciated since late summer, and recreational land remains a strong performer.
• Wisconsin: In dairy-dense areas, mid- and lower-tier farmland is stable or appreciating, supported by strong milk prices. Recreational properties are also benefiting from increasing demand, aligning with trends across the region.

Factors Shaping Today’s Farmland Market

• Economic Conditions: Interest rates, inflation and commodity prices play significant roles.
• Location Matters: Farmers and investors prioritize properties near their operations or infrastructure. Proximity can provide a competitive advantage by reducing transportation costs and improving efficiency.
• Limited Supply: Development pressures are reducing the availability of arable land, increasing the value of remaining farmland.

Moving Forward with Confidence

If you’re considering buying or selling land, it’s essential to start with clear goals. Farmers typically view land purchases with a generational perspective, ensuring the investment aligns with long-term operational needs. Investors, on the other hand, should evaluate both cash rent returns and long-term appreciation potential.

Working with a trusted advisor can make all the difference. Connect with a Compeer appraiser to ensure your farmland decisions align with your goals.

We’re here to help you navigate the complexities of the farmland market. Whether you’re buying, selling or planning for the future, our appraisal services provide clarity and confidence to support your decisions.

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