The farmland value challenge: "I can't bring myself to pay this much"

"I just can't bring myself to pay this much for farmland."

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It’s a common sentiment among existing landowners, farmers and investors sizing up today’s farmland market. And it's understandable — many folks acquired their north-central Iowa land decades ago at a quarter, or even less, of what it costs today.

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But when we anchor to past prices without adjusting for what’s changed, we miss something important …

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This isn’t the same asset as it was back then.

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Yes, inflation has raised the price of just about everything — homes, cars, washing machines. But unlike many of those assets, farmland doesn’t just cost more today. It produces more. And that production is backed by real economic return, year after year.

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But that shift didn’t happen overnight.

Over the past few decades, nearly everything around farmland has evolved — from what we grow and how we grow it to the systems that support it.

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Let’s take a closer look at a few of these shifts …

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More demand from more directions

Decades ago, most corn crops were grown for feed or food. Today, that output extends into a wider range of markets — from gasoline additives to industrial materials like insulation and textiles to everyday goods like diapers, toothpaste and tires. 

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This kind of diversification makes the market more resilient and demand more stable across pricing cycles.

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Consistently higher yields

In the early 1900s, average U.S. corn yields hovered around 26 bushels per acre. Since the 1950s, they’ve climbed by nearly two bushels per acre every year. 

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This steady growth comes from better genetics, better planting and smarter inputs. Meaning the same acres simply produce more over time.

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Stronger safety nets

Farmland also comes with a built-in safety net. 

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Today’s crop insurance programs protect against both yield losses and price swings, providing an annually adjusted financial floor. While this system didn't fully mature until the 1990s, its structure helps operators stay on track during tougher seasons, which in turn helps preserve rental income and long-term land value for landowners.

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(I explore the “safety net concept” more in this article on farmland vs. traditional real estate as an investment hedge.)

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Lower production costs

Precision farming — defined by the USDA as “technologies that allow producers to make operating decisions on a site-specific basis” — has reshaped how we farm. Tools like GPS-guided machinery, yield mapping and variable-rate technology help us do more with less, reducing waste and boosting efficiency. On many farms, these technologies can save $15–25 per acre on inputs and machinery costs alone.

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And with better data, every decision gets smarter.

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The unwritten chapter

Perhaps what’s most exciting is that some of the biggest shifts are yet to come.

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Previously, most yield gains came from traditional breeding methods that took decades to mature. Now, tools like gene editing are speeding up that process and making it more precise.

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We’re also learning more about what’s happening in the soil. A teaspoon of healthy soil contains millions of organisms — most of which we don’t fully understand yet. And as the science advances, so will our ability to manage crops more efficiently and sustainably.

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Automation is pushing us forward, too. From drone farming to autonomous farm equipment, farms are becoming even more efficient.

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So when someone says, “I can’t pay this much,” I understand.

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But I’d offer this: You’re not paying more for the same thing. You’re paying for a more capable, more efficient, more versatile asset.

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It may look like the same field — same fence posts, same tree lines.

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But under the surface, everything has changed.

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And what you can expect in return has changed, too.

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Reid Weiland is the managing partner of Weiland Farms. He oversees the farm’s day-to-day operations and leads all land management and farmland acquisition efforts.

‍Disclaimer: This article is for general informational purposes only and does not constitute investment, financial or tax advice. You should consult with a licensed professional for advice concerning your specific situation.

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