Growth in average U.S. farm real estate value slows

Growth in average U.S. farm real estate value slows

With a value of $2.38 trillion, farm real estate (land and structures) accounted for 81 percent of the total value of U.S. farm sector assets in 2014. 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. On average, U.S. (excluding Alaska and Hawaii) farm real estate values increased 2.4 percent (in nominal terms) to $3,020 per acre over the 12 months ending June 1, 2015. Growth in average values has slowed substantially relative to the previous three year mid-year to mid-year periods, when nominal farm real estate values increased over 8 percent annually. National averages mask wide regional variation. Based on nominal values, farm real estate in the Southern Plains and Pacific regions experienced the highest rates of appreciation of 6.1 percent and 5.8 percent (to $1,900 and $4,780 per acre), respectively, over the 12 months ending June 1, 2015. In contrast, farm real estate in the Corn Belt declined 0.3 percent (to $6,350 per acre). This chart is found on the ERS topic page on Land Use, Land Value & Tenure, updated August 2015.


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