As we flip the calendar to 2025, we approach the new year with cautious optimism. The changes we witnessed last year made 2024 a year of major transitions. The ag commodity markets ended the year lower than we started it, the mortgage interest rate markets ended the year higher than we started it, and the political environment ended the year with major changes headed our way.

How might all these changes affect the 2025 farmland market?

In 2025, I think we are back to focusing on the big fundamentals. Last year reshuffled the deck for seller expectations heading into land sales, as concerns for diminished on-farm profitability pressured land values for the first time in several years. We saw land values drop 5% to 10% in most areas. However, after the big fall harvest, it seems the land market stabilized a bit. Most farm operations seemingly outproduced their 2024 budgets and maintained positive — even if marginal — profits.

Looking ahead, the strength or weakness of the 2025 farmland market will largely depend on the new growing season. The big variables are again in control — production and prices, interest rates and political movements (e.g., farm bill, export, renewable fuel and tax policies, among others). Regional differences also will emerge, shaped by neighborhood-specific dynamics, as reflected in the sales data highlighted below.

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For now, recognize there is much we don’t know, so focus on what you ordinarily do.

O’Brien County. Located northeast of Hartley, 80 +/- acres recently sold at public auction for $16,200 per acre. The farm consisted of 73 +/- tillable acres with a Corn Suitability Rating index of 95.6 and equaled $186 per CSR2 point on the tillable acres.

Mitchell County. Located south of Stacyville, 155 +/- acres recently sold at public auction for $15,300 per acre. The farm consisted of 149 +/- tillable acres with a CSR2 of 92.1 and equaled $173 per CSR2 point on the tillable acres.

Black Hawk County. Located southeast of Hudson, 74 +/- acres recently sold at public auction for $15,200 per acre. The farm consisted of 72 +/- tillable acres with a CSR2 of 80.1 and equaled $195 per CSR2 point on the tillable acres.

Greene County. Located northeast of Paton, 80 +/- acres recently sold at public auction for $13,500 per acre. The farm consisted of 79 +/- tillable acres with a CSR2 of 76.3 and equaled $179 per CSR2 point on the tillable acres.

Story County. Located southwest of Zearing, 186 +/- acres recently sold for $14,200 per acre. The farm consisted of 182 +/- tillable acres with a CSR2 of 87.3 and equaled $166 per CSR2 point on the tillable acres.

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Benton County. Located northeast of Newhall, 80 +/- acres recently sold for $14,500 per acre. The farm consisted of 78 +/- tillable acres with a CSR2 of 91.5 and equaled $162 per CSR2 point on the tillable acres.

Fremont County. Located southwest of Percival, 80 +/- acres recently sold at public auction for $7,500 per acre. The farm consisted of 80 +/- tillable acres with a CSR2 of 74.5 and equaled $100 per CSR2 point on the tillable acres. Note: This river-bottom farm adjoined Interstate 29 and was accessed only by easement.

Union County. Located south of Creston, 335 +/- acres recently sold at public auction for $8,400 per acre. The farm consisted of 300 +/- tillable acres with a CSR2 of 78.5 and equaled $119 per CSR2 point on the tillable acres.

Washington County. Located south of Ainsworth, 74 +/- acres recently sold at public auction for $13,700 per acre. The farm consisted of 74 +/- tillable acres with a CSR2 of 77.4 and equaled $177 per CSR2 point on the tillable acres.

Hertz Real Estate Services compiled this list but did not handle all sales. Call Hertz at 800-593-5263 or visit hertz.ag.