WASHINGTON, D.C. — The value of U.S. farmland reached a new record high in 2025. Still, the market is showing signs of cooling, according to the U.S. Department of Agriculture’s latest Land Values Summary Report. The national average for farm real estate—including land and buildings—increased by $180 to $4,350 per acre, marking a 4.3% increase. While this is the fifth consecutive year of growth, it is a slower pace compared to the rapid appreciation seen in earlier years of the decade.
The report highlights that both cropland and pastureland also hit record values. The average value for cropland rose by 4.7% to $5,830 per acre, while pastureland values climbed 5% to $1,920 per acre.
Regional Variations and Market Drivers
Growth in land values varied significantly by region. Michigan led all states with a 7.8% increase, while no state experienced the double-digit gains seen in previous years. The highest-value land remains in the Northeast and California, with Rhode Island and Massachusetts topping the list at $22,500 and $14,900 per acre, respectively.
The report also notes that rising land values are being supported by a combination of factors, including federal assistance programs, which are helping to boost farmer income and liquidity. Lifestyle and investment trends are also playing a role, with remote work fueling migration to rural areas and institutional investors seeking stable, inflation-resistant assets like farmland.
Rental rates also hit new highs, though at a modest pace. Cropland cash rents rose 0.6% to $161 per acre, while pastureland rents remained flat.
