Farm Bureau Looks At "Skyrocketing" Land Values

Farmland values hit all-time highs this year even as the rate of increase has slowed. Farmers and ranchers have experienced firsthand the ever-increasing value of farmland, and new analysis lays those numbers out. Danny Munch, economist with the American Farm Bureau Federation, said prices have hit record highs, despite a cooling rate of price increases.

“The average value of U.S. farm real estate, which includes land and buildings, rose 3.4% to $4,500 per acre," Munch noted. "Cropland values increased 3.3% to $6,020 an acre, and pastureland rose 4.2%. That pace has slowed, though, since 2020. It's a 44% increase since then. But in the first year, it was an 11.7% that went down to 3.4% in 2026.”

Farmers and ranchers who own land will have a stronger balance sheet thanks to increased values, but there are still pros and cons to the cost of land going up.

“That increases farm equity, provides additional collateral, and that it can improve access to credit," Munch said. "The downside is that higher values make it much more expensive to buy land, enter farming for beginning or new farmers, or expand an existing operation. Renters face a particular challenge because they pay higher costs without receiving the equity gains.”

Munch said competing buyers for land are swallowing up some options, which could continue the upward trend in land values.

"Commercial and residential development, renewable energy projects, outside investments, recreation, rural residential demand are all competing for that same land access, which is more likely to take land out of agriculture in the longer term."

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