By Blake Jackson
Farmland values across the Farm Credit Mid-America service area continued to climb over the past year, rising 7.1%, according to the organization’s July 2026 benchmark study. During the first six months of 2026, values increased another 2.4%.
However, the report highlights that the market is becoming increasingly selective, with significant differences among states, regions and individual properties.
“Farmland values remain strong overall, but there is no single farmland market,” said Jennifer Riethman, head of collateral production at Farm Credit Mid-America.
“Land quality, location, buyer intent and local economic pressures are creating different conditions from one community to the next. Producers need to understand what is happening locally and evaluate each opportunity based on their own operation,” Riethman added.
Kentucky posted the strongest statewide annual gain at 10.9%, followed by Ohio at 10.7% and Tennessee at 9.2%. Meanwhile, benchmark counties in Arkansas and Missouri reported an average increase of 1.7%. Indiana moved in the opposite direction, with farmland values declining 1.9% after years of notable appreciation.
Regional differences were also substantial. East Tennessee led the study with a 20.4% annual increase, while northeastern Ohio rose 17.6% and central Kentucky gained 14.5%.
All three Indiana regions recorded declines, including a 2.4% decrease in northern Indiana and 1.6% drops in both central and southern Indiana.
Multiple factors are supporting demand despite pressure on traditional row-crop economics. Strong cattle prices are encouraging interest in pastureland, while recreational and rural residential buyers continue competing for wooded and recreational properties.
Development near expanding population centers such as Columbus, Indianapolis and Nashville is also affecting land prices.
Still, buyers are becoming more cautious as financing costs rise, commodity prices remain uncertain and producer margins tighten. Farmland purchases now require stronger income potential to generate acceptable cash flow.
“Producers cannot control or consistently predict where the land market will go next,” Riethman said. “What they can do is understand their numbers, know what their operation can support and determine how a potential purchase fits their long-term goals. Preparation matters more than prediction.”
Farm Credit Mid-America advises producers to consider each property within their broader business strategy rather than relying solely on market averages, particularly when evaluating high rental costs and projected profitability.
Photo Credit: istock-alenamozhjer
Categories: Kentucky, General, Government & Policy