Midwest Region

The Corn Belt includes the relatively homogenous row-crop heavy production region across much of the Midwest, including Iowa, Illinois, Indiana, Ohio, and Missouri. Iowa and Illinois rank first and second, respectively, in the value of agricultural outputs in the region, and all five states rank in the top 13 nationally in terms of agricultural production value, each in the top 10 for corn and soybean production.

The total value of production exceeds $125 billion in receipts across all commodities in the region annually.

As suggested by the name, the region dominates in the production of corn (and soybeans) with Illinois and Iowa combining for over 30% of the nation's total annual production. The financial performance of investments in the Corn Belt can be characterized as a long history of steady annual income that follows and generally exceeds the return to Treasuries, with reliable but more variable appreciation over time. Total returns have been competitive or have exceeded returns from investments in publicly traded equities with much lower volatility, but the “thin market” and heterogenous nature of farm investments does make access to the asset class more complicated than direct investments in equities. As noted in the overview, but at an even more profound level, farmland investments in the Corn Belt have served as remarkable inflation hedges with highly correlated returns that have exceeded inflation in all but a few distinct years. Additionally, the Corn Belt tends to be somewhat of a leading indicator for returns in other parts of the country with exposure to coarse grain production and tends to register both increases and decreases in economic fortunes a bit ahead of the regions such as the Delta and PNW to some degree.

Farmland in the Corn Belt has continued its remarkable recent run of years with high appreciation rates and above-average farm incomes. However, transactional volumes have slowed considerably in the later parts of 2023, and there remains a sense of caution about future sales volume returning in 2024. Neighboring farmers have always been the primary purchasers of farmland in the Corn Belt, but the share of active farmer cash purchasers has increased markedly as higher current interest rates have kept some leveraged buyers and institutional buyers on the sideline. The market has shown considerable strength with prices leveling or backing off only slightly from the peaks in early to mid-2023. High-quality farmland in the Corn Belt is truly viewed as the gold standard for agricultural investments in any case, so it shows the greatest residual demand of any region and has the greatest concentration of “deep pocket” buyers of any region of the country.

The basic economic factors that drive the farmland markets in the Corn Belt can be summarized as income, interest rates, and inflation. On the farmer side, income potential is the most important factor whether for purchasing or for paying cash rents to control the land. A collection of positive factors over the past few years included a run-up in commodity prices along with the attendant support of crop insurance prices, a strong balance sheet effect from the series of government payments stemming from the trade war with China, and pandemic-related payments, strong world demand signals, and ever-increasing choruses calling for payments to support future conservation and carbon sequestration efforts at the field level.

Turning to the impact of elevated interest rates, the sector carries very low aggregate long-term real estate leverage at about 13%, and much of that is in fixed-rate financing that to some degree became locked in with increases in new-money borrowing rates over the past 18 months. Operating loans do represent an increased burden, but for many operators, even a 4% increase in their operating line rates equates to just a few bushels of production. The main effect of increased interest rates is probably to limit the interest of investor-buyers who typically carry more leverage than individual farmers. Finally, the rationalization of expected inflation at new higher levels compared to the levels artificially held low following both the housing crisis and the pandemic actually bodes well for long-term farmland prices. In total, the “valuation” effects in farmland have shifted a bit toward the appreciation side and away from the current income side, but apparently with little impact on long-term expected total returns.

Farmland markets in the Midwest in general continue to move toward cash rent and flexible cash rental arrangements with a tick up in custom farming arrangements as well. About 60% of total acreage is leased in the Corn Belt and these lease arrangements are viewed as “sticky” for many reasons. The result to those outside the ag sector may appear to be slow to respond, as rental rates tend to move less quickly than annual incomes, with the resulting smoothness of annual returns to investors being incredibly stable.

The transactional pace question that has many concerned in the farmland brokerage space is whether the volume of transactions will return to its more normal historical levels. The long-term volume of agricultural land brought to market in arms-length transactions has been about 1.5% of total acres over much of the Corn Belt. From late 2020 through parts of 2022, the volume was meaningfully higher than historical averages but has slowed significantly in nearly all markets. This pattern raises the question about whether the previous period represented an abnormal acceleration, or whether there is a building balance of transactions that will accelerate in the future if economic conditions change. In either case, the demand for exposure to farmland in otherwise equity-heavy portfolios remains strong, and thus buyers sidelined by higher interest rates are likely to return as well as conditions evolve and interest rate markets normalize.

Farmland is a slow-turnover, long-duration asset with higher acquisition and disposition costs than pure financial assets, and thus requires intentional and committed acquisition strategies to attain meaningful holdings. The Corn Belt has a great deal of historic and continuing interest by non-operating investors – a feature that is likely to continue and return with capacity to absorb any increase in transactional volume without requiring substantial decreases in prices given the attractive return features of investments in the region.

SUMMARY
The Corn Belt continues to be the most important region for row crop production in the U.S. and thus in turn for the world. The region has performed exceptionally well during recent periods of instability in traditional financial markets, higher returns to alternative investments, and under increasingly unified expectations around inflation. Government payments for, and societal interest in moving toward a lower carbon energy sector have transitioned the conversation about farmland from being cited as a primary pollutant to being recognized as a critical resource to move toward greener energy generation in the future. Interest rate markets (and expected inflation levels) are beginning to normalize, and the rationalization of higher borrowing costs has begun to creep into normal capital costs for ownership while also registering the positive effects of inflation on long-term appreciation. In total, the factors surrounding agricultural production and investment valuation models that create the steady and competitive returns, inflation hedging features, and diversification benefits in the Corn Belt region appear to remain firmly intact in the region for now and into the future.

ALL REGIONS


Regional Offices

Peoples Company - Bloomington

Midwest

1907 Jumer Drive
Suite D
Bloomington, IL 61704

800.607.6888

Info@PeoplesCompany.com

Peoples Company - Cascade

Midwest

300 1st Avenue W
Cascade, IA 52033

563.543.8338

Jesse@PeoplesCompany.com

Peoples Company - Champaign

Midwest

1605 South State Street
Suite 110
Champaign, IL 61820

800.607.6888

Info@PeoplesCompany.com

Peoples Company - Clive

Midwest

12119 Stratford Drive
Suite B
Clive, IA 50325

515.222.1347

Info@PeoplesCompany.com

Peoples Company - DeWitt

Midwest

700 6th Avenue
DeWitt, IA 52742

563.659.8185

Info@PeoplesCompany.com

Peoples Company - Fremont

Midwest

1735 E. Military Avenue
P.O. Box 672
Fremont, NE 68026

402.721.5995

Info@PeoplesCompany.com

Peoples Company - Independence

Midwest

2300 Swan Lake Boulevard
Suite 300
Independence, IA 50644

319.361.8089

Travis@PeoplesCompany.com

Peoples Company - Indianola

Midwest

113 W. Salem Avenue
Indianola, IA 50125

515.961.0247

Info@PeoplesCompany.com

Peoples Company - Kasson

Midwest

20 4th Street SE
Kasson, MN 55944

507.634.7033

Info@PeoplesCompany.com

Peoples Company - Kearney

Midwest

4111 4th Avenue
Suite 22
Kearney, NE 68848

308.237.7662

Info@PeoplesCompany.com

Peoples Company - Lincoln

Midwest

3501 Plantation Drive
Suite 100
Lincoln, NE 68516

402.434.4498

Info@PeoplesCompany.com

Peoples Company - Norfolk

Midwest

800 W. Benjamin Avenue
Suite B
Norfolk, NE 68701

402.371.0065

Info@PeoplesCompany.com

Peoples Company - Omaha

Midwest

10665 Bedford Avenue
Suite 102
Omaha, NE 68134

402.334.0256

Info@PeoplesCompany.com

Peoples Company - Oswego

Midwest

2681 U.S. Highway 34
Oswego, IL 60543

331.999.3490

Info@PeoplesCompany.com

Peoples Company - Plainfield

Midwest

714 Main Street
Plainfield, IA 50666

515.222.1347

Info@PeoplesCompany.com

Peoples Company - Wapakoneta

Midwest

22253 Blank Pike
Wapakoneta, OH 43895

402.334.0256

Jeff.Post@PeoplesCompany.com

Peoples Company - Wayne

Midwest

206 Main Street
Wayne, NE 68787

402.375.3385

Info@PeoplesCompany.com


Regional Listings

Listing #19059

Hartford, IA

3333 220th Avenue
Hartford, IA 50118

Farmhouse on 2.5 Acres with Outbuildings Near Carlisle and Hartford, Iowa Peoples Company is pleased to represent the Anna M. Freeman Revocable Trust in the sale of this farmhouse on 2.5 acres m/...

2.50

ACRES M/L

$275,000

#19059

LISTING

New Listing
Listing #19057

Ringgold County, IA

240th Avenue
Mount Ayr, IA 50854

Peoples Company is pleased to present this high-quality recreational farm located in the heart of Ringgold County, Iowa. This property offers an exceptional blend of income-producing acres and premium...

80.00

ACRES M/L

$490,000

#19057

LISTING

New Listing
Listing #19044

Lucas County, IA

Orchard Avenue
Chariton, IA 50049

A rare opportunity to own approximately 10.11 acres M/L located inside the Chariton city limits. This property offers a unique combination of privacy, open space, and convenience—providing a peacefu...

10.11

ACRES M/L

$125,000

#19044

LISTING

Upcoming Auction
Listing #19041

LaSalle County, IL

N 24th Road
Grand Ridge, IL 61325

Mark your calendar for Wednesday, February 18, 2026 at 10:00 AM CT. Peoples Company is pleased to be representing Kim Diss in the sale of her farm located east of Grand Ridge, Illinois. The farm consi...

80.24

ACRES M/L

02/18/2026

AUCTION DATE

#19041

LISTING

New Listing
Listing #19038

Bremer County, IA

Easton Avenue
Plainfield, IA 50666

Peoples Company is excited to present an exceptional opportunity to acquire 119 acres m/l of prime farmland in Bremer County, Iowa. This nearly 100% income-generating property features 118.31 FSA till...

119.00

ACRES M/L

$1,487,500

$12,500 / ACRE

#19038

LISTING

Listing #19032

Davis County, IA

Silver Trail
Floris, IA 52560

28.96± Acres Recreational & Building Site with CRP Income Near Floris, Iowa Peoples Company is pleased to offer this 28.96 acres m/l recreational and building site tract located just east of Floris i...

28.96

ACRES M/L

$209,960

#19032

LISTING

New Listing
Listing #18852

Cumming, IA

345 N 38th St.
Cumming, IA 50061

New construction by Ground Breaker Homes in Middlebrook, Iowa's first agrihood. This thoughtfully designed one-story ranch blends timeless architecture with modern comfort and a highly functional layo...

0.25

ACRES M/L

$645,000

#18852

LISTING

New Listing
Listing #18851

Cumming, IA

1725 Homestead Ln.
Cumming, IA 50061

Introducing our one-story Homestead Townhomes, where luxury meets countryside charm. Inspired by traditional farmhouse design, these townhomes feature timeless architecture that blends seamlessly with...

0.08

ACRES M/L

$429,900

#18851

LISTING

New Listing
Listing #18849

Cumming, IA

1715 Homestead Ln.
Cumming, IA 50061

Introducing our one-story Homestead Townhomes, where luxury meets countryside charm. Inspired by traditional farmhouse design, these townhomes feature timeless architecture that blends seamlessly with...

0.08

ACRES M/L

$429,900

#18849

LISTING

Listing #18841

Warren County, IA

Highway G76
Lacona, IA 50139

Warren County, Iowa Farmland, Recreational & Building Site Opportunity – Peoples Company is pleased to present 73.78 acres m/l located just west of Lacona, Iowa, along paved County Highway G76. This...

73.78

ACRES M/L

$647,500

#18841

LISTING

View All Listings


Regional Team