Johnny Klemme on Midwest Farmland Trends: 2025 Market Review and 2026 Outlook

A Steady Midwest Farmland Market with Select Strength: Johnny Klemme’s Outlook for 2025 and 2026

Johnny Klemme of Geswein Farm & Land in Lafayette, Indiana, shares his perspective on farmland market trends in 2025 and expectations for 2026. With over 20 years of experience and hundreds of millions in land transactions across Indiana, Illinois, and Michigan, he provides insight into pricing trends, buyer behavior, and long-term land value.

2025: Selective Strength in the Farmland Market

Klemme describes 2025 as a year of “selective strength,” where overall activity was more measured than post-COVID highs, but high-quality farmland remained highly competitive and value resilient.

Buyers became more disciplined, focusing on soil quality, drainage, location, and long-term use. Premium Class A farmland continued to attract strong demand, while lower-quality ground saw longer market times and occasional no-sales, creating a “two-speed market.”

Outlook for 2026: Stability with Pockets of Strength

Looking ahead, Klemme expects overall stability with selective strength in top-tier farmland, while marginal ground may see some softening depending on quality and location. He emphasizes that farmland remains highly local, with values varying significantly even within the same region.

Investors, Farmers, and Long-Term Confidence

Klemme also expects continued investor interest alongside strong demand from expansion-minded farmers. Farmland remains an attractive long-term asset for both operational efficiency and portfolio diversification.

He notes a growing trend of intentional selling, where landowners prioritize alignment with buyers and legacy outcomes in addition to price. Increasing use of appraisals and wealth planning also reflects ongoing generational land transitions.

Ultimately, Klemme believes farmland remains one of the most stable long-term assets, valued for both financial strength and its role in family legacy.