Demand for farmland also is down. Public land auctions declined 8 percent in the first six months of 2016 compared to the previous year. This percentage includes public auctions in Iowa, Nebraska, South Dakota and Wyoming, as well as Kansas, where FCSAmerica works in alliance with Frontier Farm Credit to monitor farmland values.

Across the five states, lower farm incomes and per-acre profitability continue to put downward pressure on farmland values. Unlike last year, when a strong livestock market led to increased demand for pastureland, values on both pasture and cropland are generally down in 2016. This reflects lower commodity prices for grain as well as cattle.

The fall in commodity prices has outpaced the rate of decline in farmland values and FCSAmerica continues to forecast a soft landing for agriculture as the current market correction brings supply and demand back in line.

Below is the average change in benchmark farm values, with the number of benchmark farms appraised in each state noted in parenthesis:

Trends in farmland values:

IOWA: Fourteen benchmark farms declined in value during the first six months of 2016, while seven showed no change. The average sale price for cropland has reached a 5-year low, but average land quality continues to be at historically high levels.