USDA: Farm Real Estate Values Still Rising but Slowing

U.S. farmland values climbed again this year, marking the fifth consecutive annual increase, according to the USDA’s newly released 2025 Land Values Summary Report. The report shows farm real values rose 4.3% over 2024. 

However, the pace of appreciation is below the 5% jump seen in 2023–24 and far slower than the dramatic 11.7% surge from 2021–22. 

National Farmland Values Overview

Here is a look at the numbers: 

• Farm real estate (land and buildings) averaged $4,350 per acre, up 4.3% -- a $180 increase from 2024.

• Cropland rose to $5,830 per acre, climbing 4.7% -- a $260 increase from 2024.

• Pastureland reached $1,920 per acre -- an increase of $90 or 4.9%.

• States with Highest Increase in Farmland Value

Some regions of the country saw greater growth than others. 

• Utah led all states with a 9.7% increase in cropland value.

• Michigan (+8.2%) and Tennessee (+7.8%) also saw high cropland gains.  

• Minnesota cropland appreciated by 7.0%, while Michigan saw the highest overall farm real estate boost at 7.8%.

• South Dakota posted a 6.8% rise in farm real estate, with pasture rising 8.6%.

Midwest Farmland Has Some of Highest Values

The Midwest retained some of the country’s most valuable farmland due to its concentration of productive row crops. For example, Iowa has some of the highest values per acre, at $9,790. Ohio is a close second, at $9,350 per acre. 

Farmland values in the Northern Plains and Mountain West remain among the lowest. North Dakota’s value is $2,360 an acre, and South Dakota is $2,970 an acre. These prices reflect limited cropping returns, low development pressure, and a higher share of privately held rangeland. 

Farmland Values May be Cooling after Strong Gains

American Farm Bureau Economist Daniel Munch wrote recently in the MarketIntel newsletter about what the USDA numbers mean for farmers and land owners.

“Though land values are still rising, the slowing pace signals a market cooling from the rapid appreciation seen earlier this decade. This shift carries implications for farm finances: slower equity growth limits producers’ ability to leverage land as collateral for loans, while lenders may grow more cautious if they anticipate stagnation or decline in land markets,” Munch said.

Farm Credit Services of America: Land Values Reflect Slight Increase

Farm Credit Services of America (FCSAmerica) tracks values every January and July in eight states, looking at designated benchmark farms. The most recent report found an average gain of 1.10%. 

Here are the states tracked:

•   Iowa

•   Kansas

•   Minnesota

•   Nebraska

•   North Dakota

•   South Dakota

•   Wisconsin

•   Wyoming   

Iowa (-0.1%) and Nebraska (-0.9%) each saw slight declines. This was the second consecutive dip for the two states, although values remain near their record highs. 

Average farmland values showed solid increases in South Dakota (5.3%) and Wyoming (5.2%).

Tim Koch, Farm Credit Services of America Executive Vice President - Business Development, told American Farmland Owner in early August that he doesn’t have a strong feeling where prices will go from here, but likely won’t see big increases. 

“My crystal ball is not very clear,” Koch said from his office in Omaha, Nebraska. “But I’d anticipate more downward pressure on values than upward for the rest of the year.”

Related: Find out what Tim Koch is tracking in this conversation on the American Farmland Owner Podcast here.