State surveys show farmland values trying to climb higher, but the rate of increase has slowed. While farmland remains a stable long-term investment with a long track record of growing in value, tight profit margins could mean a few years of stepping back in land values, according to Purdue University ag economist Michael Langemeier.

Land values and cash rents do see some dips through the years in times of returns at or below breakeven prices, even if they are not as volatile as the stock market.

Earlier this year, the USDA estimated 2024 net farm income would drop 25% from last year. However, farmers do have relatively low debt levels. This situation has helped keep land values and cash rents from declining.

Read more about how farm income projections have slowed land value growth here.