Ag Analyst Randy Dickhut: More Farmland May Hit the Market in Late 2025

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Supply has been down, while demand has remained strong. Those two forces helped keep farmland values up nationally, Randy Dickhut believes. Relying on his 30 years of farming experience and 20 years in farm management and land brokerage work, he thinks that interest will remain strong in the final months of 2025. But there could be some changes ahead in the market.

"Farmland is still a safe investment…cash rent. It’s secure," Dickhut told American Farmland Owner.

“You don’t have to worry about unpaid rent… it’s always going to be rented, and it’s pretty stable,” Dickhut said about the strength of farmland’s values.

Randy Dickhut bio:

• Agricultural Economic Insights – farmland analyst

• Farmland National Company – Former VP Client Relations

• Family Farmer – Near Quincy, Illinois

  
  

According to Dickhut, even in times of uncertainty in the bond and stock markets, landowners often hold onto their farms, either for investment reasons or due to deep-rooted family connections. “There’s usually somebody in that group that wants to preserve the legacy… because this was my grandparents’ farm,” he explained.

Projected Increase in Available Farmland for Sale

While overall stability remains, Dickhut does expect a modest uptick in farmland hitting the market before the end of the year. He attributes this to a mix of reasons, including producers dealing with financial pressure and those who missed earlier high points in the market cycle.

This trend could lead to more land listings, particularly from producers facing tight cash flows.

“There’ll be a little more come on the market from farmers who are in some financial issue, problems, short cash flow or balance sheet,” Dickhut added.

He noted some farmers might choose to sell off a smaller parcel, such as 80 acres, or excess equipment to manage finances. So that would not mean a large-scale selloff.

Cattle Profits Push Up Farmland Values

Another important trend affecting land values is the divergence in profits between livestock and crop operations. “Livestock profits in general are up,” Dickhut observed, “The commodity crops are down.”

This has impacted values across different types of land. “In a lot of the states… pastureland is up more than cropland,” he said.

In mixed-operation states like Nebraska, cattle profits are supporting land values even as corn and soybean prices lag. “Where the cattle are the focus, there are profits there. And so that naturally supports some land values,” he said after surveying the trends in the state.

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Some Farmers Face Financial Pressures in 2025

Despite the long-term nature of land investments, liquidity is increasingly a concern for producers. With new Farm Bill payments (and still no new Farm Bill) delayed and crop prices underwhelming, some grain farmers are being forced to reassess their short-term financial strategies.

“I looked yesterday evening at harvest corn prices,” Dickhut said. “The quote for October is $3.56. That doesn’t put a lot of enthusiasm in farmers’ minds. The grain farmer’s cash flow or liquidity is going to be challenged.”

He noted that without ad hoc government payments or higher crop prices, producers will have to get through the year with thinner margins. “’I’ve got to struggle with my cash flow down here until I get this a whole year later,’” he said of their thinking.

Farmland Buyers May Be Neighbors or Investors

Dickhut sees a mix of potential buyers. While local farmers often aim to purchase neighboring ground, there is growing sophistication in how deals are structured.

“If I want to sell a farm, that farmer today is trying to find an investor, whether it’s an individual or investment fund,” he said. “They’re really trying to find someone to buy it, so they can still farm it and rent it.”

This quiet transition helps producers maintain their acreage base while adjusting ownership behind the scenes. Importantly, Dickhut doesn’t foresee dramatic market correction.

Unlike the 1980s farm crisis, today’s producers are more pragmatic and financially literate.

“Farmers are, in general, wiser today. Some will sell off a piece of land. I don’t think it’ll overwhelm the market,” he said.

He also pointed to a growing number of retirements as another factor slowly reshaping the landscape. “Farming through the good times gets a little tougher.”

“’I think I will retire,’” Dickhut believes will be their decision.