With a nationwide average of $4,130 an acre this year, the value of U.S. cropland is nearly unchanged from the 2014 average of $4,100 an acre, according to an annual USDA survey of producers. Cropland values may be feeling the after-effects of the 2013 collapse of the commodity boom and sharply lower farm income.
The Land Values report, released on Thursday, said cropland values have fluctuated by less than 1 percent nationally from the 2014 average, ranging from $4,090 an acre in 2016 and 2017 to $4,130 in 2015 and this year. The USDA provided no analysis of the statistics. The report was based primarily on information gathered in June from operators who worked land in the 11,000 parcels, each about one square mile, selected by the USDA.
By region, cropland values were highest on the West Coast, averaging $6,780 an acre, buoyed by California’s average of $11,740 an acre. The Corn Belt was next, with an average value of $6,710 an acre, led by Iowa’s average of $8,100 an acre.
While cropland values have held steady since 2014, the USDA said farm real estate values have risen by 6 percent during the period. The average acre of farm real estate, which includes land and buildings, was worth $3,140 this year, compared with $2,950 in 2014.
The Southern Plains had the largest increases, by percentage, in the value of farm real estate, cropland, and pastureland this year, said the USDA.