Editor's note: To include a land auction in this monthly report, please email jennifer.latzke@farmprogress.com or call 620-253-5497.
U.S. farmland real estate values have stayed strong despite tighter farm financial conditions, according to an Aug. 27 update from Ty Kreitman, associate economist for the Federal Reserve Bank of Kansas City.
Kreitman is a key contributor to the Center for Agriculture and the Economy, an initiative at the Kansas City Fed to offer research and data for agricultural and rural communities. He wrote that even as land values have outpaced increases in rental rates — resulting in a lower-than-expected return on that farmland from cash rents — the long-term appreciation of agricultural land has remained relatively steady.
“The capitalization rate on nonirrigated cropland dropped slightly below the 10-year moving average yield on 10-year U.S. bonds in the second quarter of 2026,” he wrote. “However, the 10-year moving average of annual appreciation in land values remained more than 1.25 percentage points higher. Over the past decade, average land appreciation has also exceeded average yields on inflation-adjusted 10-year bonds by about 3.5 percentage points.”
Kreitman said farmers remain the primary buyers of land in most major agricultural regions. That’s because the long-term prospects may seem more attractive to buyers when considering inflation and alternative investments. Read more here.
Land auction reports continued to be sporadic across the state through August, with many real estate companies reporting they expect the pace to pick up after fall harvest.
Here are recent land sales of note:
Russell County. On Sept. 1, about 1,059 acres of tillable farmland and pasture grassland south of Luray, Kan., were sold at auction. The land sold in five tracts. Tract 1, about 150 acres of grassland, sold for $2,500 per acre. Tract 2, about 273 acres of pasture, sold for $2,450 per acre. Tract 3, 325 acres of dryland, sold for $2,150 per acre. Tract 4, about 154 acres of dryland, sold for $3,050 per acre. Tract 5, about 157 acres of dryland, sold for $1,900 per acre. The seller was the Walter H Homewood Trust. BigIron Realty handled the sale.
Saline County. A single tract of about 132 acres of dryland wheat stubble with mineral rights west of Solomon, Kan., sold at auction Aug. 11 for $3,304 per acre. The seller was the Gary Vaupel Trust. BigIron Realty handled the sale.
Butler County. The former Girl Scouts of Kansas Camp Four Winds sold at auction July 9. The 243 acres of recreational land northeast of Leon, Kan., sold for $5,761.32 per acre. Highlights of the parcel included a 14.5-acre watershed lake, heavy timber, a creek running the length of the property, native grass and trails, as well as facilities on the property for a camp and recreational retreat. The seller was the Girl Scouts of Kansas Heartland. Gene Francis & Associates handled the sale.