Average farm real estate values keep marching upward, according to USDA’s National Agricultural Statistics Service’s annual Land Values report. For 2024, agricultural land is valued at an average of $4,170 per acre. That’s $200 or 5% more than last year and marks the fourth straight year of higher farm real estate values.
Farm real estate measures the value of all land and buildings on farms, and the average annual values are estimated primarily on surveys conducted in early June. Values are also broken down for cropland and pasture, both of which were higher than last year. Cropland averaged $5,570 per acre, up $250 from last year, while pasture values averaged $1,830 per acre, which was $90 higher.
Total farm real estate value has risen 94% since 2010, when an acre of farmland cost $2,150 on average. Twelve of the 14 years since then have seen farmland value rise, with the other two years (2016 and 2020) recording negligible $10-per-acre drops compared to the previous year.
Florida experienced the highest year-over-year gain in farm real estate value in 2024, with a 13.4% rise bringing the cost per acre in the Sunshine State to $8,300. Tennessee followed with land becoming 10.7% more expensive, and Virginia recorded a 10.4% rise to mark the only states with double-digit land value jumps. Average land cost did not decline in any state, although Wisconsin farm values remained flat at $6,120 per acre.
It is no surprise that the most expensive farmland is in the densely populated Northeast. Rhode Island tops the list; an acre of agricultural land there will cost you $22,000. Land in New Jersey, Massachusetts, and Connecticut will fetch more than $14,000 on average.
Outside of this region, California is the only state with a five-digit average land value. Prices there rose 2.3% from last year to average $13,400 for 2024.
Comparing usage
When looking specifically at cropland, the trend toward higher values is even more pronounced. Since 2010 when an acre of cropland cost $2,700 on average, values have skyrocketed 106%.
During the last year, cropland got 4.7% more expensive. Tennessee farmers felt the most change, with cropland values rising 10.9%. Ohio land values climbed 9.7%, and Florida cropland costs were up 9.5%
Pastureland has risen in cost more slowly but is still up 73% compared to 2010. Outside of New England and New Jersey, pasture is most expensive in Florida, where it averaged $7,300 per acre, which was up 12.7% compared to last year. That was the second biggest jump of the last year, as Virginia pasture became 13.6% more expensive.
Limited availability, high yields, and historically low interest rates through much of the last decade have all pushed agricultural land values up. However, agricultural lenders are seeing this trend stabilize as interest rates have been raised and commodity prices for 2024 are lower. While it is unlikely land will get significantly more affordable, it may be a bit easier to buy ag land in the coming months than it has been for a while.
