Why Now Is a Good Time to Sell Your Farmland Even in Today’s Political and Economic Climate

If you’ve been thinking about selling your farmland in Iowa, Nebraska, Illinois, or Minnesota, you’re not alone,  but we also know many landowners are hesitant to right now. The political noise, interest rate talk, and economic uncertainty, and tariffs are enough to make anyone pause on deciding whether or not to sell the farm. Will tariffs have an effect on farmland prices? How is all of it interconnected? Let’s dig in a see.

Here’s the truth: despite the headlines, farmland prices in the Midwest are not falling off a cliff like some believe. At DreamDirt, we track actual real farmland sales – not speculation. Our data clearly shows that now is a favorable time to sell land for many reasons.

While some are holding off out of fear, others are cashing in and getting strong results. As I have often told my clients, “We know where we are today, we know the pattern today, but we won’t know what will happen in the next 6 months or 2 years. The best time to sell is when you are ready, let us handle the stress of ensuring you get top price”.

I have been a farmland broker and auctioneer for 20 years. I’ve seen many different scenarios play out in that time and despite the news and scuttlebutt (often painting a dark picture of the situation), we’ve never faced any steep decline and I’ve never seen the market fall on its face during that time. Why is that? Because farmland is a unique, scarce and highly desirable asset. Despite todays markets, despite todays turmoil, many of the farms buying land today are capitalized as multi-generational farms or investment income. Both have stood the test of time or they’d not still be here today. Today matters very little in terms of long term plans and succession, or accumulated wealth for farmland buyers. Most are ready to buy land when its available and for sale.

Recent reports have show declines in farmland prices across all Midwestern states including Iowa. The recent Iowa Realtors Land Institute report show a decline statewide of 1.0% with various rates of decline or acceleration in the 9 different crop reporting districts. South Central Iowa came in at +.02% increase in land value and West Central Iowa was on the opposite end of the report with a decline of 1.6%. This report measured from September 2024 up to March 2025. The declines in value are negligible in my opinion when you consider that measurements from report period to report period can be accounted for by quality and quantity of farms sold. Both have an impact on the average value of land in Iowa. At this point, the trend seems to be that farmland is holding its value despite the economic and political challenges of the day.

1. Strong Demand for Farmland and Limited Supply of Acres For Sale

Farmland continues to be a scarce and highly desired asset. Politics and economics certainly can play a role, but farmers and investors both know the value of holding farmland. In counties across Iowa, Illinois, Nebraska, and Minnesota, we’ve seen consistent demand from farmers expanding their operations, local landowners, and outside investors. Many of them have the capital and motivation to buy now, and quality land isn’t sitting on the market for long.

2. Farmland as a Safe Haven Investment

In times of uncertainty, smart investors flock to assets that don’t lose their value overnight. Farmland is one of those assets. Unlike stocks or crypto, land has a long-standing reputation as a stable, appreciating investment. For those looking to hedge against inflation or diversify their portfolio, farmland continues to be a top pick.

3. Strong Historical Returns and Continued Demand

While corn and soybean prices have pulled back from their record highs in 2022, they remain at historically healthy levels. Even with tighter margins, farmers and investors alike are still active buyers. Many had highly profitable years recently and are in a strong position to bid competitively. This sustained interest is helping farmland values stay firm or even grow, in many counties across the Midwest.

4. Institutional and 1031 Exchange Buyers Are Active

There’s still a strong presence of institutional buyers and investors using 1031 exchanges to reinvest capital gains. These buyers are often willing to pay premium prices to secure high-quality farmland, particularly in states like Iowa and Illinois where top-tier soils are in limited supply.

Why Average Farmland Values Mean Less to You.

Average farmland values are a picture of a market. Even with the average land value in Iowa hovering around the mid $13,000 per acre range, it is very possible your farm is worth more than that. Averages as you know include the lowest sales and the highest sales to paint a picture of a market. In March 2025, 13 out of 38 farms in Iowa sold more than $1,000 above the average. Many sold near the average and only 8 farms sold for less than $10,000 per acre. Those farms selling below $10,000 were farms with poorer soil quality, and less than 95% tillable farmland. It is very important that you not get caught up in the averages when judging your farm and get a full, robust and FREE Market analysis from DreamDirt to learn what your farm might sell for.

Why Some Sellers Are Hesitant — And Why You Shouldn’t Be:

It’s natural to feel uncertain, especially when the media paints a picture of doom and gloom; but fear can lead to hesitation, and hesitation can lead to missed opportunities. Some landowners who thought “now isn’t the right time” just a year ago are now seeing higher prices and wishing they’d moved sooner.

In places like Cedar County, Iowa, Champaign County, Illinois, Fillmore County, Minnesota, and Lancaster County, Nebraska, we’ve recently seen competitive sales that exceeded expectations thanks to a strong pool of motivated buyers.