What’s Happening in the Ag Land Market Across Iowa, Illinois, and Wisconsin?

As the Midwest land market navigates through 2025, Iowa, Illinois, and Wisconsin stand out with unique trends shaping their agricultural real estate landscapes. According to a recent report from Farmers National Company, despite the broader economic pressures such as lower net farm income, declining commodity markets, and rising interest rates, land values in these states have shown some remarkable resilience. The latest video from Peoples Company (embedded below) also shows these details across the ag land market.

Iowa: A Tale of Two Markets

In Iowa, the land market has experienced a gradual decline in average values, down 5-10% from the peak levels of 2021 and 2022. This drop reflects a weakening demand, particularly for lower-quality, poorly drained farms. However, high-quality, highly tillable farmland continues to attract significant interest, sometimes fetching prices reminiscent of the record highs seen two years ago. The method of sale in Iowa is also shifting, with traditional listings and sealed bids becoming more common for less desirable properties, while premium land still predominantly sells through auctions.

Illinois and Wisconsin: Stability Amid Shifting Expectations

Over in Illinois and Wisconsin, land sale values have been more localized and have slightly increased in most areas. Although record-breaking sales are now rare, many farms still sell at historically strong levels. The market is showing signs of a shift, with some auctions not meeting reserve prices, indicating a misalignment between seller and buyer expectations. As a result, private treaty listings are becoming a preferred method for transactions, especially in regions where local buyer pools or farm quality are in question. For 2025, the outlook suggests that land values in Illinois and Wisconsin may stabilize or see slight decreases, reflecting tighter farmer profit margins.

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The Bigger Picture: Motivated Buyers and Scarce Listings

Across these states, a common thread is the presence of motivated buyers, both farm operators and land investors, eager to invest in land despite fewer listings. Many landowners are holding onto their properties, recognizing the long-term appreciation potential and steady returns on their investments. This has led to a 25% drop in available land compared to the active market of 2020-2023, contributing to the stability in prices.

Ag Land Outlook for 2025

Looking ahead, the market is expected to remain active, particularly with ongoing interest from operating farmers and land investors who see land as a valuable asset. With fewer properties changing hands and potential shifts in the agricultural economy, land values in Iowa, Illinois, and Wisconsin will likely reflect a cautious balance between buyer enthusiasm and seller strategy.

Iowa, Illinois, and Wisconsin's land markets are adjusting to current economic realities with localized trends, a mix of sale methods, and a generally stable outlook for 2025. Whether you're a buyer or a seller, understanding these nuances will be key to navigating this ever-evolving landscape of risk/reward land markets.