USDA’s National Agricultural Statistics Service (NASS) released the Land Values 2021 Summary Report showing farmland real estate values increased at a rate not seen since 2012.
According to NASS, farm real estate value—a measurement of the value of all land and buildings on farms—increased 7 percent in 2021 to $3,390 per acre, $200 per acre more than 2020. This percent increase has not been seen since 2014, when farm real estate values increased 8 percent, and the dollar value not since 2012.
Similarly, pasture value averaged $1,480 per acre, increasing $80 per acre or 5.7 percent from 2020. Cropland values also saw a sizable increase in value of 7.8 percent from 2020, with an average value of $4,420 per acre, an increase of $320 per acre.
The increase in farmland real estate values varied by region and was concentrated in areas of the country with larger volumes of high-value crops, as well as areas experiencing upward pressure due to proximity to urban areas. Nebraska, Kansas and Oregon all posted double-digit percentage changes over the last year. These were followed by Texas, Iowa, California and South Dakota, each posting over 9 percent year-over-year growth. Overall, the Northern and Southern Plains experienced a 9.4 and 9 percent increase, respectively, the highest increase, followed by the Pacific region at 8.6 percent.
Pastureland values also experienced the highest percentage increase since 2014 after several years of relatively flat increases in value. Increases varied by region, with Iowa and Utah experiencing double-digit gains and Kansas, Oklahoma, Texas and Oregon posting over 7 percent gain from 2020.
Like the overall real estate and pastureland value, cropland values had the highest increase since 2013 when they jumped 14 percent. In dollar values, this year-over-year increase was $320 an acre, also not seen since 2013. The top three states in percentage growth are Kansas, Nebraska and South Dakota, posting gains of 13.9 percent, 13.8 percent and 11.9 percent, respectively. Iowa and Idaho also saw gains of over 9 percent.
According to NASS, the increases in land values were not reflected in cash rents, with the national average cropland rent increasing by 1.4 percent compared to last year. — Charles Wallace, WLJ editor
