Agricultural land values in the U.S. are increasing at a rate not seen in nearly a decade.
The Land Values 2021 Summary report shows increases across the board in U.S. and Texas agricultural real estate values, cropland values and pastureland values.
The U.S. average farm real estate value is a measurement that includes the value of all land and buildings on farms. It clocks in at a record $3,380/acre, a 7% increase over last year. That represents a percentage change not seen since 2014 when values increased 8% over the previous year. And the dollar value of the change at $220/acre is a level not seen since 2012.
In Texas, the average farm real estate value is $2,380/acre, up 9.7% over last year.
Average cropland value in the U.S. and Texas are both higher. U.S. average cropland value is $4,420/acre, up 7.8%. In Texas, the average cropland value is $2,150/acre, an increase of 5.9%.
Average pastureland value also increased in the U.S. and in Texas. Average pastureland value in the U.S. is $1,480/acre, up 5.7%. Average pastureland value in Texas is $1,800/acre, an increase of 7.1%.
The summary report and its contents provide one of many indicators of the overall health of the agricultural economy and help paint a picture of costs that farmers face as they negotiate rent levels for the near future.
USDA says, so far, the increases in land values have not yet been reflected in cash rents, with the national average cropland rent increasing by 1.4% compared to last year.