Average U.S. farm real estate values hit new high

Average U.S. farm real estate values hit new high

Worth $2.2 trillion, farm real estate (land and structures) accounted for 82 percent of the total value of U.S. farm assets in 2012. Because it comprises such a significant portion of the U.S. farm sector’s asset base, change in the value of farm real estate is a critical barometer of the farm sector's financial performance. Changes in farmland values also affect the financial well-being of agricultural producers, because farm real estate is the largest single component in a typical farmer's investment portfolio and it serves as the principal source of collateral for farm loans. Following the 1980s farm crisis—during which farmland prices declined in response to rapidly rising interest rates and higher energy prices—farm real estate values have trended upward. Despite expectations of lower farm income this year, U.S. farm real estate values increased in 2014. This chart updates one found in the ERS report, Trends in U.S. Farmland Values and Ownership, EIB-92, February 2012.


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