U.S. cropland is worth an average of $5,570 an acre, an increase of $1,510, or 37 percent, since 2020, said the USDA’s annual Land Values report. The surge in land values accompanied the four highest years of net farm income, a gauge of profitability, for American farmers.
The USDA said cropland value rose by $250 an acre, or 4.5 percent from 2023. It was the smallest increase since value began to rise in 2021, after six years of stability. It averaged $4,060 an acre in 2020. Value rose $290, or 7.1 percent, in 2021; by $590, or 13.6 percent, in 2022; and by $380, or 7.3 percent, in 2023.
California cropland was worth $17,330 an acre, the highest average value in the country. Three Corn Belt states had land values above $9,000 an acre: Illinois, $9,550; Iowa, $9,800; and Ohio, $9,270.
Ag bankers say they expect small increases in farm land values this year, or even a standstill. High interest rates and declining commodity prices were making buyers more selective, they said in surveys by the Federal Reserve in the spring.
The Land Values report is available here.