Despite Recent Gains, Wyoming Farmland Values Show Signs of Slowing
Farmland values in Wyoming have made modest gains over the past six months according to the latest Benchmark Farm Value Trends Report issued by Farm Credit Services of America (FCSAmerica) and Frontier Farm Credit. Values for Wyoming farmland have shown an average increase of 2.7% in the past six months and 5.1% in the past 12 months.
“The combination of higher interest rates and tighter margins for grain producers is having an impact on cropland values,” said Tim Koch, FCSAmerica executive vice president of business development.
Several years of strong profitability created optimism in the real estate market and helped to offset the impact of the Federal Reserve’s rate hikes in late 2022 into 2023, Koch said. The market continues to benefit from willing buyers competing for limited land. But as grain prices have fallen, attention is shifting to a more challenging economic environment.
State-by-State Comparisons
As a whole, benchmark values ticked up an average of 0.07% across Iowa, Kansas, Nebraska, South Dakota and Wyoming, the five states served by FCSAmerica and Frontier Farm Credit.
Since January 2024, land values made modest gains in eastern Kansas, Nebraska, South Dakota and Wyoming. In Iowa, which generally is on the leading edge of market trends, values declined for the first time in five years. Despite the pullback, Iowa’s real estate values are up nearly 60% since 2019. Across all five states, values remain at or near record levels.
The chart below shows the average change in values by state based on the twice-a-year appraisals of 70 benchmark farms.
Below is a state-by-state look at benchmark values. The percentage change is based on puritan benchmark farms, or those that are either exclusively cropland or pasture. Of the 70 benchmark farms, 55 are puritan cropland or pasture. None of the Iowa benchmark farms are puritan pasture ground.
Iowa: Values for cropland have shown an average decline -3.6% for both the past six and 12 months. The real estate market has been relatively stable to slightly decreasing since 2022.
Kansas: Cropland values in the eastern part of Kansas served by Frontier Farm Credit rose an average of 1.9% and 5.8% during the past six and 12 months, respectively, pointing to stable values.
Pasture values, supported by profitability in the cow-calf sector, are up an average of 2.7% and 14.8% for the same period. The demand for pasture remains strong and Flint Hills pasture continues to show a steady increase.
Nebraska: Cropland values increased an average of 0.5% in the past six and 7.0% in the past 12 months. The market is relatively stable, with continued strength for top quality cropland.
Pasture benchmark values increased an average of 0.4% and 6.5% in the past six and 12 months, respectively.
South Dakota: The market shows stability; cropland values are up an average of 1.1% and 4.5% for the past six and 12 months.
Pasture benchmark values increased an average of 10.4% and 14.7% for the same periods.
Wyoming: Cropland values increased 4.4% and 9.2% during the past six and 12 months.
Pastureland is up 1.0% and 2.5% for the same period.
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