Farm real estate value increased 7% over 2020, according to USDA report

A recent USDA report shows that farm real estate values are up 7 percent from a year ago. That’s an increase of $220 dollars per acre.

The Midwest carried most of the increase with land pushing $5-8,000 dollars per acre.

USDA’s chief economist says that this reflects the run up in commodity prices from August through May and it is not the first time we have seen a jump like this in recent history.

According to USDA’s Seth Meyer, “That 7 percent is a big number and we last saw that increase back in 2013-14, and seeing those kinds of increases and ’13-'14, we were kind of hitting some of those higher prices, and now we’ve seen land values with a pretty substantial increase year-over-year for ’21.”

USDA says that producer optimism about returns on their land moving forward has also contributed to the value increase.


National Land Reality’s CEO discusses rural land values, investments

Ag land values are expected to hold steady, according to new report

Farmland prices hit highest point in many years