High-Quality Farmland Demand Remained Steady
Lower-quality properties faced selling struggles as buyers prioritized drainage and efficiency in the market.
Updated on Oct. 8, 2026 in Agriculture
Live Poll
Is it becoming more difficult for new farmers to enter the market in your area?
While demand for high-quality farmland held steady across the United States, lower-quality acreage saw a decline in value and struggled to attract buyers. Investors continue to prioritize drainage capabilities and long-term farming efficiency.
Why it matters
The bifurcation in land value highlights how agricultural buyers are increasingly selective, focusing on yield potential and technical infrastructure rather than total acreage. This trend underscores a flight to quality as producers navigate tighter margins.
Market reports indicate steady demand for high-quality tracts versus weakness in lower-quality property values. The exact extent of the downturn for lower-quality parcels remains under investigation.
The players
Terry Kestner
Terry Kestner is an expert who recently provided a professional assessment of current land market trends.
ASFMRA
The American Society of Farm Managers and Rural Appraisers is an organization currently expanding its educational course offerings nationwide.
The details
Market participants are favoring properties with superior drainage and operational efficiency, causing a cooling effect on inferior land. Meanwhile, the market for recreational farmland remains resilient, bolstered by buyers who typically generate their primary income outside of the agricultural sector.
Timeline
Wednesday marked the day Terry Kestner provided insights on current land market trends.
Market Landscape
The current divergence in land values follows the established pattern of the historical premium on tillable acreage with tile drainage. This reflects a broader industry shift where infrastructure and operational efficiency dictate competitive pricing.
Prospective buyers and landowners may see reduced market interest in parcels that lack modern drainage features. Producers should account for these valuation gaps when planning long-term investments or property improvements.
The takeaway
Landowners should prioritize drainage and efficiency improvements to maintain property value in a selective market. Investors are increasingly focusing on utility over total acreage, favoring productive land that supports modern agricultural practices.
Further reading
For more context on land valuation and regional trends, visit the Agriculture section.
Source note: This article includes information reported by RFD-TV.
Live Poll
Is it becoming more difficult for new farmers to enter the market in your area?
