Iowa soybean farmers have long faced competition from Brazilian producers, who historically benefited from lower farmland costs. However, new research from Purdue University reveals that the price gap between Iowa and Brazil’s largest soybean-producing state, Mato Grosso, has narrowed significantly over the past two decades.
In 2002, average farmland values in Iowa were around $2,100 per acre, rising to approximately $11,500 per acre by 2025. Meanwhile, farmland in Mato Grosso increased from about $1,300 per acre in 2002, with sharp increases during periods of strong commodity prices. Joana Colussi, a research assistant professor at Purdue University, noted that Brazilian farmland values doubled between 2010 and 2014, then more than doubled again between 2020 and 2022, closing the historical price advantage.
However, recent market conditions have caused the gap to widen again. Declining soybean and corn prices have affected farmland markets in both countries, but Iowa farmland values have remained relatively stable, while those in Mato Grosso have declined. By 2025, Iowa farmland was valued 27 percent higher than comparable farmland in Mato Grosso.
Brazilian producers are grappling with declining farm revenues, rising input costs, and large grain supplies that have slowed farmland transactions. Iowa farmers face similar financial pressures, including tighter profit margins and elevated production expenses. Despite these challenges, farmland values in both regions remain historically high.
Looking ahead, Colussi suggests that improving commodity prices could support Brazilian farmland markets, while the outlook for Iowa remains relatively stable. Strong demand for agricultural commodities, geopolitical tensions, and concerns about El Niño impacts on crop production have recently provided some support for corn and soybean prices. If these stronger prices continue, conditions in Brazil’s farmland market could improve in 2027.