Non-irrigated cropland prices in Kansas increased by 3.8% last year, while pasture and hay ground saw a 2.7% rise, according to the 2024 Kansas Agricultural Land Values and Trends report. Kansas State University farm economist Robin Reid explained that these figures suggest land prices are stabilizing after years of rapid growth, with some regions even experiencing declines. As margins tighten and farm income decreases, Reid anticipates that land values could continue to decrease.

The stabilization of land values is attributed to a lower profitability environment, with commodity prices generally down after a period of high prices. High input costs, including financing and interest rates, are also putting pressure on farmers.

Land value varies greatly across the state. For example, southwest Kansas saw an 11-12% increase, driven by dairies and feedyards, while north-central Kansas experienced a drop after a significant increase in 2023. Eastern Kansas continues to see growth in both non-irrigated crop ground and pastureland due to factors like urbanization and land quality.

Looking ahead to 2025, economic assistance, including direct payments for producers, will likely influence the land market and cash rental rates. Without these payments, Reid suggests that land values could decline further.