Is Land Still a Good Investment in 2026?

If you’ve been watching farmland prices in the Midwest, especially here in Western Illinois and Eastern Iowa, you’ve seen a trend that’s hard to ignore. Over the past five years, land values climbed rapidly, cooled slightly from the peak, but never returned anywhere close to pre-2020 numbers. That raises an important question for landowners, investors, and anyone searching for land for sale in Illinois or Iowa:

Is land still a good investment in 2026? The short answer is "yes". The longer answer, "yes, but in a more strategic way than during the 2021–2023 frenzy".

5-Year Farmland Trend Snapshot

Nationally, farmland has appreciated steadily at an average of about 5.8% annually over the time from 2019 to end of 2025. That’s the backdrop: a long, strong uptrend, even as interest rates and input costs moved higher. Zoom into the Midwest, and the picture gets more interesting.

• In Illinois, average farm real estate values rose from roughly $7,110/acre in 2020 to about $8,930 in 2025, which is around a 25% jump. After several years of sharp gains, recent studies show a modest softening in early 2025, with some Class A tracts down just a few percentage points from the peak. But even with that dip, today’s prices would have been “record highs” five years ago.

• Iowa tells a similar story. Farm real estate moved from about $6,870/acre in 2020 to $9,790 in 2025, roughly a 40% increase. Iowa State’s separate cropland survey shows values easing 3.1% in 2024, then ticking back up 0.7% in 2025; still just below the 2023 record high of $11,835 per acre. That’s not a collapse; it’s a market catching its breath.

• In Missouri, the move has been even more dramatic. Farm real estate averaged around $3,430/acre in 2020 and about $5,000 in 2025, a gain of roughly 46% in five years. Missouri has generally trailed Iowa and Illinois on absolute price, but the percentage growth has been very competitive, and actually lead the board in the midwest over this time period.

• Wisconsin has quietly been climbing too. Extension data shows the average ag-land sale price at $6,363/acre in 2024, up 7% from 2023, with the biggest jumps coming between 2020–2022 (14% and 11% annual gains). Prices are still rising, but the pace has clearly cooled.

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Illinois & Iowa Land Market

Illinois Land Values (Western IL)

• 2020: Low $7,000s/acre average

• 2025: Upper $8,000s average, with premium tracts much higher

• Slight cooling in 2024–2025, but values remain well above pre-boom levels

In many cases, farms selling today would have been considered record sales five years ago.

Iowa Land Values (Eastern IA)

• 2020: High $6,000s/acre average

• 2025: Near $9,500–$10,000/acre average in many counties

• Top-tier farms continue to reach five figures per acre, with many sales in the high-teens and some exceeding $20K per acre

After a brief dip in 2024, the market stabilized and strengthened in 2025.

Why Midwest Land Has Held Value

Several factors continue to support Midwest land prices:

✔ Limited supply: people rarely sell good farmland

✔ Strong investor demand: stable, tangible asset class

✔ Recreational demand: driven by whitetail hunting and rural lifestyle trends

✔ Income potential: crop rent, grazing, CRP, marketable timber, hunting leases, solar or wind leases, carbon credits

Unlike stocks or crypto, land provides utility, long-term equity, and enjoyment. You can farm it, build on it, hunt it, or pass it down through generations.

Should You Buy or Sell Land in 2026?

If you own land, the last few years have treated you well. Even with a slight softening from the peak, values remain historically strong.

If you’re looking to buy land. the environment is more balanced than peak years of 2020-2022. Good farms still command a premium, but the urgency-to-overpay dynamic has eased. Smart buyers are positioning before the next demand cycle.

If you’re planning to sell land, inventory is low, buyer interest is steady, and well-marketed properties still move relatively quickly; especially ag land, mixed-use recreational farms, and hunting land in Western IL & Eastern IA.

Bottom Line

Land in this region continues to prove itself as a reliable long-term investment, even through shifting interest rates and economic uncertainty. It’s not just an asset; it’s a place to create memories, build a legacy, and own something real.

At the end of the day, land is more than a chart or comp. It's soil, timber, wildlife, water, family, work and memory. And in 2026, those who understand its worth are still finding tremendous opportunity here.

— Chase Burns, Land Broker with LandGuys, LLC serving Northwestern Illinois.