Section 1: Market Snapshot

Farmland values across TPA’s four licensed states finished Q1 2026 near historic highs, though the rate of appreciation has clearly moderated. Transaction volume is down 4–16% depending on region — but the data tells a specific story: there are fewer sellers, not fewer buyers. Quality properties continue to transact with multiple competitive bidders. The advisors managing estates and trusts should read this as a seller’s market with patient capital, not a market in retreat.

1A — Land Values & Transaction Volume

Transaction Volume — Licensed States

1B — Commodity Prices & Farm Economics

Input Costs (Year-over-Year)

The cost-price gap for row crop producers has reached a 10-year high. Input costs are up 10–22% year-over-year while commodity prices have softened from their recent peaks. This creates real pressure on farm operators — and it creates downstream pressure on cash rent negotiations for the 2026 season. Importantly, operational return compression has not yet translated to land value declines. The gap between what land earns and what land is worth continues to widen.

Cash Rent Rates — Licensed States

Section 2: Estate & Tax Planning Update

“Every advisor owes their client an honest conversation about whether auction is the right fit — and that conversation deserves better than a reflexive ‘we’ll list it and see.’”

Federal Estate Tax — Current Landscape

Quarterly Updates

The permanent estate tax exemption of $15 million per individual ($30 million per married couple) established under the OBBBA in July 2025 has materially changed the planning landscape. The urgency that characterized sunset planning in 2024 has lifted. What advisors should be aware that this creates is an opportunity window — clients with large land holdings can now plan proactively rather than reactively. The 1031 exchange remains fully available for qualified like-kind exchanges, and stepped-up basis continues to eliminate deferred capital gains at death. For clients holding appreciated farmland acquired decades ago at nominal cost basis, the stepped-up basis provision alone can represent millions in preserved estate value.

No material changes this quarter. The permanent $15M individual / $30M married exemption (established OBBBA July 2025) removes urgency around sunset planning while creating opportunity for proactive 1031 exchange and stepped-up basis strategies. Advisors managing estates with significant land holdings should initiate valuation conversations now, while the seller’s market dynamic favors orderly disposition timelines.

Section 3: Case Study

Situation

A 1,607±-acre family farm held in trust with multiple beneficiaries with no agreement on sale timing or method. The family contacted TPA after the patriarch passed away and asked us to help them navigate their fraught family dynamics and maximizing the value the asset.

Approach

The seller provided an appraisal for $3.5 million; however, after TPA conducted a full Broker Opinion of Value, we saw more value on the table. We recommended a competitive online auction with a reserve after strategically subdividing the property to maximize the value. A 45-day marketing campaign targeted both regional and out-of-state recreational buyers.

Outcome

Final sale price of $5.6 Million. Transaction closed in 70± days from engagement. All beneficiaries signed off without dispute.

“Advisor Takeaway: When a family can’t agree on how to sell, the right process creates the alignment that private negotiations rarely do. Competitive auction eliminated the guesswork and the conflict simultaneously.”

Section 4: Advisor Resources & Contact

When Your Client Mentions Land

• Client inherits land — request a Broker Opinion of Value before any listing conversation. Land values vary dramatically by location, soil quality, and highest-use potential. A BOV takes 5–7 business days and costs nothing.
• Client considering estate land sale — confirm beneficiary agreement and timeline before choosing a sale method. Auction and private sale serve different situations; the right method depends on timeline, beneficiary dynamics, and property characteristics.
• Client needs a land valuation — contact Jake Brown directly at 314.602.1116 for a no-obligation consultation. TPA covers Missouri, Illinois, Iowa, and Kansas.

Direct Contact