AEI Researchers Revisit How Often Farmland Changes Hands

Last fall, Dickhut and Widmar used Acres.com to study turnover in Illinois farmland. They discovered surprising levels of variability at the county level. Now, with access to expanded state-level data from Acres, they are revisiting the question with a broader lens.

Key Takeaways

Pace Significance 

One key observation: the pace of farmland sales varies significantly across states. Iowa has consistently shown the slowest turnover rate, while Ohio and Minnesota have historically experienced the highest rates of land sales.

Location, Location, Location

Geography plays a major role in sales activity:

• Ohio and Minnesota had the most overall sales activity, with transactions concentrated largely in the eastern counties—likely due to differences in farmland type.
• Illinois saw higher activity levels in its northern and southern counties.
• Indiana experienced more sales in the southern part of the state.
• Iowa recorded the slowest turnover, particularly in its central and western counties.

Rethinking the “1% Rule”

The long-standing rule of thumb—that roughly 1% of farmland is sold each year—holds reasonably well in Iowa or when averaging Iowa, Illinois, and Indiana. However, this rule understates recent activity in other states, especially in Minnesota and Ohio, where sales have been more robust.

Final Thoughts

The frequency of farmland ownership changes can stir a range of emotions among landowners and producers. In Iowa, farmland can feel tightly rationed compared to states like Minnesota and Ohio. As a result, auction services and lenders in Iowa may need to expand their territories to maintain their volume.

Using Acres, AEI researchers were able to spot these important trends and challenges—providing a clearer, data-driven picture of how farmland ownership is shifting across the Midwest.

You can read the full article at AEI.