The rural land market in 2025 navigates a complex interplay of economic forces. While inflation has eased from its 2021–2022 highs, interest rates remain elevated, increasing borrowing costs and influencing investment strategies. At the same time, persistently low inventory across the Mountain West and Great Plains continues to support land values, even as broader economic conditions evolve.
The market is settling into a new phase—less frenzied than in recent years, but still competitive, particularly for high-quality or unique properties. Looking ahead, land values will continue to be shaped not only by national interest rate trends and global geopolitical developments but also by local fundamentals. Each state and region has its micro-economy of land, where factors like livestock prices, crop yield outlooks, water availability, and recreational potential can outweigh broad national trends.
For landowners considering selling, 2025’s market remains favorable. Values are near historic highs in many areas, and well-marketed properties, especially those with strong income or unique features, continue to attract buyers. For buyers, the current environment offers more breathing room to conduct due diligence and negotiate, compared to the sprint of recent years. It’s a time to be selective and focus on value: with interest costs higher, the property should check all the boxes—whether that’s productivity, location, or amenities.
Both sides should keep a close eye on the Federal Reserve and inflation trends. Any indication of interest rates easing could trigger renewed competition, while persistently high rates may gradually exert downward pressure on values.
Below, we explore how these forces are playing out across the states served by Swan Land Company.
JUMP TO A STATE: Montana | Wyoming | Colorado | Utah | Idaho | Nebraska
2025 Regional Market Insights by State
Montana
Montana’s land market in 2025 reflects a measured shift from the explosive growth of recent years. Following the pandemic-era boom and a blistering 2021 market, values have moderated slightly—rising just ~1.7% in 2024, according to USDA data. However, that average masks a split market. On one end, well-capitalized recreational buyers continue to pay top dollar—often in cash—for trophy ranches with recreational value and scenic amenities. These buyers are relatively insensitive to interest rates, and competition for high-end listings remains fierce. Inventory for such properties is extremely limited—still roughly half of pre-COVID levels—which helps keep prices stable.
The ongoing “Yellowstone effect” continues to fuel demand for romanticized ranch life, drawing national interest and reinforcing the premium on iconic Western properties. In contrast, local buyers pursuing lower-amenity or purely agricultural parcels are feeling the pressure of higher mortgage rates. Rising borrowing costs have reduced purchasing power, extended listing timelines, and led to modest price adjustments in this segment.
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Inflation’s legacy also lingers. During 2021–2022, land became a favored hedge against economic uncertainty, pushing prices for legacy ranches to record highs. While inflation has since eased and safer investments now yield more attractive returns, long-term investors remain active in the land market. Additionally, the rising cost of improvements—such as infrastructure, irrigation systems, working facilities, and homes—has helped support the value of already improved properties.
Agricultural land with strong income potential remains in demand, particularly high-quality farm ground and working cattle ranches. Notable transactions—such as the sale of the Camas Creek Cattle & Sheep Company, Strand Ranch, and Climbing Arrow Ranch—underscore continued appetite for premium Montana properties.
At Swan Land Company, we see Montana’s land market in 2025 stabilizing at elevated levels. Prime properties continue to command strong prices amid historically low inventory, while the broader market adjusts to higher interest rates with a more discerning, strategic tone. If borrowing costs ease, we anticipate renewed intensity in buyer demand—potentially triggering another surge in activity fueled by the ongoing scarcity of quality listings.
Wyoming
Wyoming’s rural land market in 2025 has remained steady. Cropland values have held firm—up about 4% year-over-year—with pastureland seeing similar gains, averaging a ~4% increase over the past year. The broader average for farm and ranch real estate rose just 0.7% in 2024, reflecting stability more than growth. This resilience stems in part from the nature of the market: many transactions are conducted in cash or with significant equity, reducing sensitivity to high interest rates.
Local ranchers and farmers remain the predominant buyers, and 2024’s strong cattle prices significantly boosted ranch incomes. This has helped support grazing land values, especially in a state where livestock is a dominant driver of agricultural revenue. Meanwhile, input costs—such as fuel, feed, and equipment—have climbed due to inflation, yet land itself continues to serve as a reliable store of value. Many producers who prospered during the commodity boom of the past few years have reinvested in land, further propping up demand.
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Inventory levels also play a major role. Approximately 607,816 acres are currently listed for sale statewide, with a combined value of $3 billion. This limited supply of available land continues to support pricing, especially for large tracts with premium features.
Regional dynamics add further nuance. Wyoming’s energy and mineral rights often enhance property value, and certain areas—like the Bighorns or regions near Jackson—attract conservation buyers and outdoor enthusiasts seeking expansive recreational ranches. High-profile listings signal that top-tier Wyoming properties continue to command premium prices.
At Swan Land Company, we view Wyoming’s land market in 2025 as balanced and resilient. Strong rancher balance sheets and inventory scarcity are countering the drag of high interest rates, keeping values largely steady. As with other states in our region, a drop in borrowing costs could reignite buyer momentum, particularly in areas where recreational appeal and agricultural productivity converge.
Colorado
Colorado’s rural land market in 2025 reflects the state’s geographic and economic diversity. From high-production farmland on the Eastern Plains to sought-after recreational ranches in the Rockies, land value trends vary widely by region. Overall, farm real estate values ticked up ~2.3% in 2024. However, rising interest rates have introduced a cooling effect, particularly in areas driven by commodity agriculture or speculative development.
In eastern Colorado, cropland values that once surged during the commodity boom have now plateaued—or in some cases, dipped slightly. Average dryland values fell by approximately 2% from 2023, as softer prices for wheat, corn, and hay made farmers more cautious. Higher loan costs have also constrained how much buyers can afford to bid, reducing competition for marginal parcels. By contrast, well-irrigated farms with senior water rights have held their value. Water remains a critical factor, particularly in areas like the South Platte and Arkansas River basins, where water scarcity and urban demand help sustain land prices.
Inventory remains tight across much of the state, especially for high-quality properties, which has helped offset some of the downward pressure from high interest rates. This limited supply has been a bullish factor, particularly in the Eastern Plains, where available farmland is scarce.
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In the mountains and foothills, demand for scenic recreational ranches continues, albeit in a more selective form. The intense buying frenzy of 2020–2021 has tapered off, with high borrowing costs and a stronger stock market making some buyers more cautious. Still, premium ranches near resort areas or with exceptional amenities—such as those offering hunting, fishing, or luxury infrastructure—are fetching strong prices. Recent sales illustrate that interest in high-end land as a long-term investment remains intact.
Development trends also play a role. Along the Front Range, once-rapid residential expansion had been placing upward pressure on farmland values. However, with mortgage rates over 7%, many homebuilders have pulled back, giving agricultural land on the urban fringe a temporary reprieve from conversion pressure. Some landowners in these areas are choosing to lease or hold their land until conditions shift.
At Swan Land Company, we see Colorado’s land market in 2025 as steady but segmented. Water-secure farmland and well-located mountain properties continue to command a premium. In contrast, average or commodity-driven land must be priced competitively to move. If interest rates ease, renewed buyer activity—particularly in the residential and recreational segments—could reignite upward momentum, especially given the ongoing supply constraints across much of the state.
Utah
Utah’s rural land market in 2025 remains one of the strongest, with values continuing to trend upward despite the broader challenges of inflation and high interest rates. Farm real estate values jumped approximately 8.6% from 2023 to 2024—a notable gain driven by a mix of investor activity, population growth, and scarcity of available land.
Utah’s agricultural base is relatively small, which means a few high-dollar sales—often to development- or lifestyle-focused buyers—can significantly influence average values. Farmland in southern valleys, for example, often carries future development or recreational appeal, keeping demand robust even in a higher-rate environment. Meanwhile, ongoing population growth around the Wasatch Front and St. George continues to increase competition for well-located acreage. While elevated mortgage rates cooled the broader residential market, land with long-term development potential remains attractive as a strategic hold.
Inventory plays a key role in supporting values. Large tracts of rural land are increasingly rare, and unique properties—like the 17,000-acre sanctuary in eastern Utah, surrounded by over one million acres of public land—highlight the exclusivity of what’s available. This constrained supply, paired with sustained buyer interest, is helping keep prices buoyant.
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The inflationary period of the past two years has left its mark. On one hand, operating costs for ranchers and farmers have risen—feed, equipment, and especially irrigation have become more expensive due to ongoing drought conditions and water scarcity. On the other hand, landowners have benefitted from significant asset appreciation. Irrigated cropland, for instance, averaged $8,200 per acre in 2024, up roughly 5.7%, with secure water rights becoming a major factor in valuation.
Commodity prices for Utah’s key farm products—such as alfalfa, cattle, and dairy—continue to influence local demand, while recreational ranches near national parks or trout streams remain attractive to out-of-state buyers. That said, some are waiting on the sidelines until borrowing costs improve.
At Swan Land Company, we see Utah’s 2025 land market as a careful balancing act. Strong fundamentals and tight supply continue to support high values, but rising interest rates are making buyers more strategic and selective. If borrowing costs begin to ease, we anticipate an even stronger resurgence in activity—especially for land with a recreational appeal or future development upside.
Idaho
Idaho’s rural land market in 2025 remains resilient, holding steady after several years of rapid appreciation. While price growth has slowed, land values have largely stabilized at high levels. Agricultural land across the state is reported to be stable to slightly increasing, thanks in large part to limited supply and solid underlying fundamentals. Inventory is tight, particularly in high-demand regions like the Snake River Plain and the mountain ranch markets near Sun Valley and Teton Valley. This broader scarcity across the state continues to support prices, especially for irrigated farms and premium recreational properties.
Even as interest rates press on affordability, many Idaho transactions are conducted with significant equity or cash, often by institutional investors or well-capitalized farmers. This has helped soften the rate impact. Additionally, Idaho’s agricultural economy remains relatively healthy entering 2025. High commodity prices in 2021–2022—particularly for potatoes, sugar beets, wheat, and dairy—boosted farm incomes. Many operators used that momentum to pay down debt or expand holdings, leaving them in a better position to navigate tighter credit conditions today.
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Farmland continues to serve as an inflation hedge. Land values in Idaho were up roughly 7% in 2023 and continued to edge higher in 2024, outpacing inflation-adjusted declines seen in some neighboring states. Areas with strong farm profitability and those with high recreational or amenity value have held firm, reflecting ongoing buyer interest in both income-producing and lifestyle properties. That said, signs of cooling are emerging in some segments. The recreational land boom that surged during the pandemic has slowed—properties are spending more time on the market, and some buyers are pausing due to borrowing costs. Likewise, the rural residential trend—where out-of-state buyers moved to Idaho for affordable land—has tempered as higher rates dampen affordability for both newcomers and locals.
Water availability remains a key consideration. Idaho’s complex water rights system can influence land values, especially in regions where supply is uncertain. A recent agreement to stabilize the Eastern Snake Plain Aquifer helped avert potential irrigation cutbacks and likely prevented a dip in values for that area’s productive farmland.
At Swan Land Company, we see Idaho’s 2025 land market as being in a healthy state of equilibrium. Strong ag fundamentals and limited inventory are supporting values, but elevated interest rates have introduced a more measured tone. Buyers are more focused on long-term viability, while sellers asking for near-peak pricing must be prepared to wait for the right offer. For now, the market remains steady—and poised to respond quickly should borrowing conditions improve.
Nebraska
Nebraska’s land market in 2025 is undergoing a modest reset following an exceptional run-up in values during 2021–2023. After reaching an all-time nominal high in 2024, the average farm real estate value has dipped by about 2%—marking the first year-over-year decline in nearly a decade. This softening reflects a return to fundamentals: lower grain prices and higher interest rates are narrowing margins, limiting how aggressively buyers can bid. Corn and soybean prices, which helped drive the previous surge, have retreated from their highs, squeezing farm profitability. At the same time, land loan rates have climbed significantly—meaning a 7% interest payment today has a very different impact than the 4% loans of just a couple of years ago. For example, a pivot-irrigated quarter that may have sparked a bidding war last year could now attract fewer offers or slightly lower bids due to tighter financial constraints.
Even so, Nebraska’s land market is far from weak. The picture varies by region and land type. Prime cropland in the eastern part of the state has seen the most notable cooling, while grazing land—especially in the Sandhills and western regions—has held steadier. Pasture values were up roughly 0.4% year-over-year in 2024, thanks in part to soaring cattle prices that made ranch operations more profitable.
A limited supply of available land is helping to cushion the market. While buyer enthusiasm may have cooled from the peaks, inventory remains relatively tight, which supports values. Groundwater irrigation restrictions in some regions have constrained land appreciation, but areas tied to strong livestock, ethanol, or feedlot demand remain active.
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The buyer mix is another key factor. Farmers and ranchers—often neighboring operators—still account for most purchases. Their decisions are closely tied to on-the-ground economics, and while many still carry strong balance sheets from the profitable years, they are proceeding with greater caution in light of rising input and interest costs.
Recent sales confirm our outlook on the market’s current tone: strong but measured. A high-quality quarter in eastern Nebraska sold just below its 2023 price, while a well-located ranch tract in the Sandhills drew multiple bids. Sellers can still achieve excellent prices, particularly for well-managed or income-generating properties, but need to calibrate expectations. Buyers, meanwhile, are finding less competition than in previous years—though deep discounts remain rare.
Overall, we view Nebraska’s land market in 2025 as stable to slightly softer. Inflation’s boost has largely been absorbed, and high interest rates are creating a more deliberate pace. Yet scarcity of quality listings and solid fundamentals in key sectors continue to provide a strong foundation for land values.
Conclusion
Across the states served by Swan Land Company, persistently low inventories of rural land continue to play a pivotal role in sustaining land values in 2025. While elevated interest rates have introduced a more cautious tone to the market—particularly for buyers relying on financing—the scarcity of available properties has created a powerful counterbalance. Well-positioned land, whether income-producing, recreational, or investment-grade, continues to attract serious interest and, in many cases, competitive bidding.
For sellers, this environment remains favorable—especially for those with unique or high-quality offerings. Limited supply is helping to support pricing, even as buyers become more selective. For buyers, the current landscape offers more breathing room than in recent years, but that doesn’t mean bargains are plentiful. In a market defined by scarcity, well-informed and timely decisions are key.
As economic conditions continue to evolve—with inflation trends, commodity prices, and interest rate policy all in flux—local market knowledge becomes more important than ever. Understanding how these macro forces interact with regional and property-specific dynamics will be critical to making strategic decisions.
At Swan Land Company, we’re here to help clients navigate this shifting landscape with insight, integrity, and deep market experience. Whether you’re looking to buy, sell, or simply understand your land’s value in today’s climate, we’re ready to help you move forward with confidence.
Contact us today at (866) 999-7342 to start the conversation—or explore our current listings and market insights at www.swanlandco.com.
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