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U.S. Ag Land Values Up 5%
August 5, 2024
USDA said the value of all farm real estate increased 5% from 2023, averaging $4,170 per acre. This estimate includes buildings and other facilities.
Cropland values increased to $5,570 per acre from the previous year. That's $250 per acre more, up 4.7%.
The average pasture value was $1,830 per acre, a $90 per acre increase from 2023. That's a 5.2% change.
Farmers paid an average of $160 per acre to rent cropland, but rents on irrigated ground averaged $245 per acre while dryland rents averaged $146 per acre.
To compile its annual Land Values Summary, USDA uses a sample of 9,000 segments of land, each about a square mile in size. The agency's enumerators contact all producers in that segment to record cropland and pastureland values. They also collect an estimate of all land and buildings in the farmer's entire operation as well as percentage change from the prior year.
Data is summarized by Regional Field Offices and those estimates and supporting data are sent to the Agricultural Statistics Board (ASB). The ASB reviews the material and compiles the national estimate.
CROPLAND VALUES
Most states saw cropland values increase. The exceptions are Colorado, down 2.1%; Montana, down 0.8%; and New Jersey, down 0.6%. Tennessee saw the largest year-over-year increase at 10.9%, and USDA noted that Appalachian states (Kentucky, North Carolina, Tennessee, Virginia, West Virginia) saw the highest average increase over the past year at 8.4%.
In the Corn Belt (Illinois, Indiana, Iowa, Missouri, Ohio), cropland values climbed by an average of 4.5% to $8,560.
The average cropland value in the Northern Plains (Kansas, Nebraska, North Dakota, South Dakota) was $4,040 per acre, an increase of 6.6%.
Lake states (Michigan, Minnesota, Wisconsin) saw an average price increase of 4.2% to $6,470.
PASTURELAND VALUES
Pasture values increased in all states surveyed by USDA. Double-digit percentage gains were seen in Minnesota, up 13.9%; Virginia, 13.6%; Florida, 12.7%; New Mexico, 11.3%; and Iowa, 10.4%.
The strongest regional gain was in the Southeast (Alabama, Florida, Georgia, South Carolina). An acre of pasture cost an average of $5,510, or 10.6% more than in 2023.
Prices in the Northern Plains climbed 6.6% to $1,450 per acre, while Southern Plains states (Oklahoma, Texas) saw values increase 6.4% to $2,160 per acre.
CASH RENTS
NASS also released "Quick Stats" details showing average cash rents per state for 2024. Nationally, the average cash rent this year is $160 an acre, up $5 from 2023. The average irrigated cash rent came in at $245 an acre, up $8 an acre from 2023.
Source: DTN
