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What is Farmland Worth?

Positive Future News #929 (Feature Photo – Grain Harvest – CCA 2.0 Generic, Charles Knowles)

According to the USDA, of the 895 million acres of farmland in America, approximately 315 million acres are in crops, and 580 million acres in are in pasture.

The USDA’s Land Values 2021 Summary shows that farmland for crops increased in value from $2,980 an acre in 2011 to $4,420 and acre in 2021. Now, this is the average price and high value crop acres with water could exceed $25,000 an acre. However, a 48 percent increase in the average value of crop acres is dramatic. For most farmers, one cannot pay for farmland at the current market, unless they can spread the cost over acres that are already paid for or with low mortgages on them.

For pastureland, land increased from $1,070 in 2011 to $1,480 in 2022 – a 38 percent increase.

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