Iowa Farmland Market: 2025 Predictions

If you’re thinking about buying or selling farmland, 2025 will present several opportunities and challenges. Experts predict economic conditions, interest rates, and demand to be among the leading trends. 

1. Stable Farmland Prices
   Iowa farmland has long been a sought-after investment, due to the high-quality soil. This demand has led to a significant increase in land prices throughout this past decade. However, 2025 is likely to see stable increases going forward. If the prices increase, it will not likely be as significant as past years. This means 2025 will be a great year to buy farmland before the prices begin increasing again!
   
   
2. Rising Interest Rates
   For those looking to buy and sell farmland in 2025, you can expect rising interest rates. This could lead to a decrease in the frequency of land transactions, due to the higher cost of borrowing. For farmers who rely on financing for land purchases, these higher interest rates can make it more difficult to utilize land as collateral. The market will likely remain favorable for cash buyers and/or those with fixed-rate loans.
   
   
3. Environmental and Sustainable Conditions 
   Both buyers and sellers alike will see an increased demand for sustainably managed farmland. Buyers will look for practices like no-till, strip-till, cover crops, intensive nutrient management, and a history of manure applications. Those looking to attract buyers should ensure that their land management focuses on environmental friendliness.
   
   
4. Technology Integration 
   Another factor that will influence land pricing is the integration of technology. The world of agriculture has seen major advancement in the way of technology over the years. Farms that have adapted to new technology, such as GPS-guided machinery, soil sensors and monitor systems, and solar panels have improved efficiency and therefore, improved land values. Those looking to sell their farmland in 2025 should highlight their technological efforts to drive the value of their parcel. 

Despite the price increases that Iowa farmland has seen over the last few years, we do not predict exponential increases in land values. Higher interest rates could lead to a decrease in transactions, which will further drive competition. If you’re thinking about purchasing farmland in 2025, check out our Iowa farmland for sale or contact one of our knowledgeable staff members.