Halderman update: Ag real estate market shows signs of softening

July 17, 2026 - 08:42

The agricultural real estate market is starting to show clear signs of a slowdown in 2026, according to Howard Halderman, president and CEO of Halderman Farm Management and Real Estate Services. Speaking during a recent industry webinar, Halderman noted that the red-hot pace of land value increases seen over the past few years is finally beginning to ease.

Halderman pointed to several factors behind the shift. Higher interest rates have made financing more expensive, squeezing both buyers and investors. At the same time, lower commodity prices have reduced farm income, making it harder for operators to justify paying top dollar for additional acres. "We are seeing a market that is becoming more balanced," Halderman said. "Sellers are starting to adjust their expectations."

While values have not crashed, the rate of appreciation has slowed significantly. In some regions, prices have even dipped slightly from their peaks. Halderman emphasized that this is not a repeat of the 1980s farm crisis, but rather a natural correction after an extended period of strong demand. He also noted that cash rents are under pressure as tenants face tighter margins.

Looking ahead, Halderman expects the market to remain stable but cautious. Buyers are becoming more selective, and lenders are tightening standards. For now, the farmland market appears to be settling into a new, more subdued phase.