A Steady Market With Select Strength: A Midwest Land Broker’s Take on 2025 and What Lies Ahead in 2026

Dave Price
6 hours ago
4 min read

Johnny Klemme of Geswein Farm & Land reflects on disciplined farmland buyers in 2025 and shares his outlook for how market forces could shape sales in the year ahead.

Klemme is co-owner of Geswein Farm & Land in Lafayette, Indiana. He has more than 20 years of business experience and has handled hundreds of millions of dollars in land transactions across Indiana, Illinois, and Michigan. He spoke with American Farmland Owner about trends he’s witnessed and factors that could influence sellers and buyers in the new year.

Now that you’ve had time to look over sales numbers for the year, how would you describe 2025?

“If you ask me to summarize 2025, I would call it selective strength. I say that because there weren’t frenzied transactions like we saw post-COVID, but pricing for high-quality farmland was remarkably resilient in 2025.”

“Overall, buyers were more disciplined and really decisive. A farm that’s got strong soils, good drainage, the right location, and a clear legacy plan still saw aggressive competition. It wasn’t like the market stopped. I think the market was just more discerning in the way buyers looked at farmland—a real flight to quality. There are some widening gaps between Class A farms and lower-quality farms.”

What surprised you about 2025?

“Logic would suggest that lower commodity prices and higher interest rates mean land values will soften—and they have. But Class A soils and farms are kind of an asset class of their own because they hold their ground.”

“I was pleasantly surprised by the disciplined intentionality of buyers. There were plenty of buyers—whether farmers or investors—who were willing to wait on the sidelines for the right opportunity. And when that opportunity came along, they were not hesitant to buy. That confidence in the face of uncertainty was notable.”

Did you see lower-quality land struggle to sell, or not sell at all?

“Absolutely. We saw both. There were a few more no-sales at auctions in 2025, and those were not Class A farms. There is a gap between average and premium ground, and I think it has widened significantly. To put it another way, it’s a two-speed market. High-quality farms are still selling efficiently and often exceeding expectations. But lower-quality soil, or a lack of drainage, for example, requires finding the right buyer, sharper pricing, and sometimes more days on the market.”

In terms of land sales and values, what are your predictions for 2026?

“I would say stability with pockets of strength. Definitely not a crash, and not broad double-digit appreciation. I think it’s normalization. It really comes down to nuances like location—that makes all the difference—and quality. If you have the right asset, the value is there. But if it’s marginal-quality ground, we could see some softening in 2026.”

Is the struggling agricultural economy as a whole part of that potential softening?

“It’s certainly a factor. Every county is different. You can look at any county in the United States and sometimes see land values that vary significantly from one side of the county to the other because of the marketplace. Some areas are more conservative. Others, especially those closer to urban centers, can be more aggressive. But there doesn’t seem to be any end in sight to where those land values are going.”

Do you anticipate increased investor interest in 2026?

“I do. It’s important to know that farmers are always going to be the backbone of the market. Well-capitalized, efficient farmers are still very active. Land ownership is a long-term hedge and a strategic necessity. When a neighboring farm comes up for sale and it’s a once-in-a-lifetime opportunity to improve operational efficiencies, they find a way to make it happen.”

“I continue to see more investors enter the market—both individuals and institutions. There’s plenty of participation from regional and out-of-state investors. They’re looking for income-producing farms to diversify their portfolios, and many see this as a good time to enter the market.”

What makes you excited and optimistic about 2026?

“We’re seeing sellers who are very disciplined in their strategy and even vetting the people who want to buy their farm. This leads to better outcomes—not just in terms of price, but in alignment with family goals, legacy, and transition plans. It feels less like a race and more like a thoughtful transition. That intentionality feels good.”

Any trends you noticed in 2025 that could carry over to 2026?

“We had several large auctions scheduled for this past fall, but we received very strong cash, no-contingency offers that met our clients’ goals. As a result, we canceled the auctions. One was a 764-acre farm in Montgomery County, Indiana—a rare, large block of land.”

“We’ve also seen an increase in appraisals over the past couple of years, at a time when a lot of wealth is transitioning—whether in agriculture with land or in other asset classes. There’s a lot of money in different marketplaces, and people are thinking long-term. Land remains a stable asset that makes sense for many.”

“The long-kept secret in rural America has always been the benefits of owning farmland. You can blame the internet and technology that allow information to travel faster, but now everybody knows that secret. Folks who think long-term and about family legacy—whether they’re actively farming or not—see farmland as a way to build a better future for themselves and the next generation. I think more people understand that today.”