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gricultural land values in the US have continued to rise, with a 4.3% increase over last year, bringing the average value to $4,350 per acre. This marks the fifth consecutive year of growth and follows a 5% increase between 2023 and 2024. Cash rent values for cropland were up 0.6% to a record $161 per acre, while pastureland rent remained flat at $16 per acre.

    Regional land values vary significantly, with California and Northeastern states reporting the highest average values due to intense demand from vineyards, orchards, and irrigated specialty crops. The Midwest retains some of the country's most valuable farmland due to its concentration of productive row crops, but price growth has moderated in recent years. Farmland values in the Northern Plains and Mountain West remain among the lowest.

    Michigan led all states with a 7.8% increase in farm real estate values, followed by Tennessee (7.7%) and South Dakota (6.8%). These increases may reflect regional drivers such as specialty crop production, in-migration, and development interest. The growth in land values is largely driven by expectations of long-term income potential, with recent federal disaster assistance providing a boost to net farm income forecasts.

    Cropland values rose to record levels in 2025, reaching $5,830 per acre, while pastureland values increased to $1,920 per acre. Cash rents had minimal changes, reflecting past agreements and serving as benchmarks for future producer-landlord negotiations. Despite the slowdown in growth, pressures on open land for solar development, suburban expansion, and recreation continue to support rental rate growth in select areas.

    The data highlights a key tension: while land values remain strong, long-term farm profitability is increasingly reliant on policy rather than price. Renters and beginning farmers are especially exposed, facing high costs with limited equity. As the USDA prepares to release updated income forecasts, this data underscores the need for policymakers to address the challenges facing the agricultural economy.