As 2025 comes to a close, Iowa’s farmland market has proven to be more resilient than many expected. Entering the year, higher interest rates and softer grain prices led some to believe land values would finally pull back. Instead, the market showed steady performance, supported by disciplined sellers and continued buyer demand for quality acres.
While activity varied throughout the year, farmland values largely held firm — not because conditions were perfect, but because fewer acres were offered for sale.
Auction Activity: Fewer Acres, Steady Demand
One of the defining themes of 2025 was limited supply.
Auction counts fluctuated month to month, but overall activity trended slightly lower than the prior year. Rather than a rush of sellers reacting to headlines, many landowners chose to wait. In uncertain markets, hesitation often leads to inaction — and that decision reduced the number of farms coming to market.
Despite fewer offerings, buyer participation remained consistent. When quality farms were available, bidders showed up. The result was a market that stayed active without becoming oversupplied.
Simply put, farmland continued to change hands — just more selectively.
Farmland Values: Quality Continues to Separate Itself
Price performance throughout 2025 showed a clear and steady separation between land quality levels.
High-quality land started the year at $13,326 per acre and finished at $14,219 per acre, reflecting consistent demand for top-tier farms even in a higher-rate environment.
Medium-quality land also trended upward, beginning 2025 at $9,496 per acre and ending the year at $10,509 per acre.
Low-quality land saw more modest gains, moving from $6,631 per acre at the start of the year to $7,078 per acre by year-end.
While all three categories posted gains, the strongest appreciation remained concentrated in higher-quality acres. As the year progressed, buyers continued to prioritize soil quality, farmability, and long-term productivity — reinforcing the performance gap across land classes.
Regional Breakdown: Strength Spread Across Nearly All Districts
Regional performance in 2025 showed strength across nearly the entire state, not just a few standout areas.
Of Iowa’s nine crop reporting districts, eight reported high-quality farmland values ranging from roughly $13,000 per acre to as high as $17,183 per acre. This broad-based performance reinforces that demand for top-tier ground remained strong statewide, rather than being isolated to one or two regions.
Northeast and East Central Iowa continued to lead the market, with high-quality farms reaching the upper end of the range and posting some of the strongest $/CSR2 metrics.
Northwest Iowa stood out within the medium-quality category, with average values climbing above $14,000 per acre, reflecting strong buyer competition for productive, well-located farms.
Across all regions, demand remained present, with buyers focusing on quality and long-term fundamentals.
A Sorting Market Took Shape
Rather than a rising or falling tide lifting all boats, 2025 became what can best be described as a sorting market.
- Good farms sold well.
- Average farms still sold, but had to work harder.
- Properties that were well-prepared and thoughtfully marketed consistently attracted the strongest interest.
How land was marketed mattered just as much as the land itself. Clear data, strong visuals, realistic expectations, and professional execution separated strong outcomes from average ones.
What It Means for Landowners
The 2025 farmland market reinforces an important point: headlines don’t sell farms — strategy does.
Limited supply helped support values, but outcomes varied depending on land quality and how each property was brought to market. For landowners considering a sale, understanding where your farm fits within today’s market is critical.
Buyers remain active, and capital continues to look for well-positioned farmland. When timing, presentation, and execution align, opportunities remain strong.
If you’re thinking about selling, planning ahead, or simply want a clearer picture of what your land could bring in today’s market, we’re here to help.
Call us at 515-996-5263 or visit wmgauction.com to start the conversation.
