U.S. farmland values have climbed nearly 44% since 2020
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By: Ag Daily
.S. farmland values have climbed to another record in 2026, strengthening balance sheets for landowners while making it increasingly difficult for beginning farmers, renters, and existing operations to acquire more ground. The average value of U.S. farm real estate, including land and buildings, rose 3.4 percent this year to $4,500 per acre, according to an analysis from American Farm Bureau Federation economist Daniel Munch. Cropland values increased 3.3 percent to $6,020 per acre, while pastureland values rose 4.2 percent to a record $2,000 per acre. The increases continue a dramatic run-up in agricultural real estate since 2020. Average farm real estate values are now nearly 44 percent higher than they were six years ago, while cropland values
have risen 48 percent and pastureland values nearly 43 percent. However, the annual pace of appreciation has slowed considerably. Farmland Values Since 2020, the largest percentage gains have been concentrated in the central Plains, with values rising 76% in Kansas, 65% in Nebraska and 61% in South Dakota (Image by AFBF) “The average value of U.S. farm real estate, which includes land and buildings, rose 3.4 percent to $4,500 per acre. Cropland values increased 3.3 percent to $6,020 an acre, and pastureland rose 4.2 percent. That pace has slowed, though, since 2020. It’s a 44 percent increase since then. But in the first year, it was an 11.7 increase that went down to 3.4 percent in 2026,” Munch said. For farmers who already own land, higher valuations can provide significant financial advantages. Rising
real estate values add equity to farm balance sheets and can provide additional collateral when producers seek financing. But those gains come with another side of the equation: Land is becoming more expensive for producers trying to get started or expand. “That increases farm equity, provides additional collateral, and that it can improve access to credit. 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. That divide is becoming increasingly important as farmland prices remain elevated while agricultural margins face
pressure. Cash rents have offered relatively little relief. The national average cropland rent slipped only $1 this year to $160 per acre and remains 15 percent above its 2020 level. Land values also vary dramatically by region. Rhode Island recorded the country’s highest average farm real estate value at $23,600 per acre, followed by New Jersey at $17,000 and Massachusetts at $15,200. New Mexico was at the opposite end of the spectrum at $735 per acre. Some of the biggest increases since 2020, however, have occurred in the central Plains. Farm real estate values See 'Farmland Value' Page 4