On Monday, August 5th, USDA’s National Agricultural Statistics Service released the 2022 Land Values Report. According to the report, farm real estate value averaged $3,800 per acre in 2022, which is up $420 per acre (12.4 %) from 2021. The cropland value averaged $5,050 per acre, an increase of $630 per acre (14.3 %) from the previous year. The United States pasture value averaged $1,650 per acre, an increase of $170 per acre (11.5 %) from 2021.
For the purpose of the report, land has been grouped by economic regions: Northeast, Lake States, Corn Belt, Northern Plains, Appalachian, Southeast, Delta States, Southern Plains, Mountain, and Pacific.
Farm Real Estate Value
Farm real estate value is defined as the value at which all land and buildings used for agricultural production, including dwellings, could be sold under current market conditions if allowed to remain on the market for a reasonable amount of time.
The $420 per acre increase YOY is the highest change that we’ve seen since USDA first provided this survey in 1997. This change can be attributed to many factors, but some of them include the rise in commodity pricing and incentives provided by the government, urban and suburban developments, and the overall inflation-proof land investment.
Kansas saw the highest farmland value increase of 25%, followed by Iowa and Nebraska at 21%.
Source: USDA - NASS
Cropland registered a strong value increase in the Plains States, with Kansas tracking a 24% increase from 2021. Nebraska cropland values increased by 21% and Iowa by 20%.
Overall, cropland value grew to $5,050 per acre, $630 per acre higher than the previous year.
Cropland value is defined as the value of land used to grow field crops, vegetables, or land harvested for hay. Land that switches back and forth between cropland and pasture was valued as cropland as well as hay land, idle cropland, and cropland enrolled in government conservation programs.