Opinion: Stability meets opportunity in local ag real estate

John Baxter

Agriculture has always been about adapting – whether it’s to markets, weather or new technology. But no matter how much things change, one thing stays the same: Land is still the foundation.

In the Ozarks, the agricultural real estate market is shifting in ways that matter to farmers, investors and rural landowners alike. Understanding those changes is key to making smart moves in 2025 and beyond.

Recent numbers from the University of Missouri and the Federal Reserve Bank of Kansas City show that farmland values are holding steady across much of the state. But certain types of land – like pasture and recreational property – are actually gaining value in our part of Missouri. That growth is tied to how people are using the land and what they’re looking for, not just what it’s worth on paper.

What the numbers say
Pastureland – used mostly for livestock – rose 11% in value last year, with the average acre going for $5,687 across Missouri. Land used for hunting or other outdoor activities also went up. At the same time, cropland – used for row crops like corn and soybeans – dipped slightly, down about 1%.

In southwest Missouri, cropland sells for less than in the more urban or flatter parts of the state. That’s due in part to our rocky soil and hills, but also because land here is often used differently. What’s gaining traction now is property that can be used for multiple purposes: Running cattle, cutting timber or offering space for hunting cabins and weekend getaways.

Several factors are pushing land values in new directions:

• Lifestyle and rural interest: More people are looking for a piece of land they can use recreationally or as a second home. That demand helps drive up prices in scenic areas like the Ozarks.

• Flexible land use: Land that serves more than one purpose – like pasture that doubles as a hunting property – tends to hold or increase in value, even when markets slow down.

• Tighter financing: With higher interest rates, some buyers are pausing on big purchases. That’s cooled things off a bit, especially for row crop operations that rely more on loans.

Still, farmland remains a steady long-term investment. Unlike the stock market, land doesn’t bounce around from one week to the next. That stability is why many landowners are choosing to hold onto property or look for smart ways to expand.

What to watch
Experts expect land values to rise modestly again this year – around 2%-3% depending on the type. But the real opportunity lies in how land is managed and used. Both buyers and sellers are paying closer attention to conservation practices, water access and long-term value, not just what’s growing on the land today.

For producers, that might mean reevaluating how much land they need and what kind. For landowners, it could mean investing in improvements that make a property more attractive to the next generation. And for agricultural lenders, it means working closely with customers to help them navigate changing conditions with the right financial tools.

The agricultural real estate market in the Ozarks isn’t booming – but it’s not backsliding either. It’s steady, with areas of growth that reward long-term thinking. Whether you’re running cattle, buying a farm or managing family land, the key is staying informed and flexible. Because while land may be fixed, how we value and use it is always evolving.

John Baxter is a community bank president and agricultural lender for OMB Bank in Ash Grove. He can be reached at j.baxter@ombbank.com.