BERESFORD, S.D. (RFD NEWS) — U.S. farmland values continued rising in 2026 even as weaker crop margins, higher interest costs, and tighter liquidity pressured farm operations. USDA’s National Agricultural Statistics Service says average farm real estate reached $4,500 per acre, up 3.4 percent from 2025.
Cropland averaged $6,020 per acre, a 3.3 percent increase, while pasture climbed 4.2 percent to $2,000. The gains extend a long rise that has lifted farm real estate values nearly 79 percent since 2012.
Higher land values strengthen collateral, borrowing capacity, and family balance sheets. They also raise the cost of expansion and make entry more difficult for younger, beginning, or heavily financed producers.
The increase stands against softer commodity returns and growing credit pressure across parts of agriculture. Strong land markets are helping prevent operating stress from becoming a broader solvency crisis.
Farmland Market Outlook: Troy Swee, ASFMRA
Farmland values continue to hold steady despite several years of reduced farm income, with limited inventory and regional demand helping support the market.
Accredited Farm Manager Troy Swee with the American Society of Farm Managers and Rural Appraisers (ASFMRA) joined us on Wednesday’s Market Day Report to discuss the factors shaping today’s farmland market and what landowners should consider when buying or selling property.
In his interview with RFD News, Swee said local commodity prices and the number of properties available for sale remain the biggest drivers of land values. Although farm income has declined over the past three years, he said land values have remained resilient, largely because fewer properties have been listed for sale. He added that buyer attendance at land auctions has also declined, but the limited supply has continued to support prices.
Swee noted that some property types are outperforming others. He said pasture values have strengthened in cattle-producing regions, while recreational properties near population centers have also seen strong demand, often tracking broader gains in the stock market.
He also discussed how sellers determine whether to market land through an auction or a traditional listing. According to Swee, the decision depends on the seller’s goals and the characteristics of the property. High-quality farmland with broad buyer appeal may perform well at auction, while properties with features that limit the buyer pool are often better suited for traditional or sealed-bid listings.
Swee also addressed what inherited landowners should consider before deciding whether to sell or retain farmland. He said the decision depends largely on long-term goals, noting that many families choose to keep farmland as part of a multigenerational legacy, while others may decide to sell if they do not plan to hold the property long term.
He added that one of the most common mistakes landowners make is accepting the first offer they receive without fully understanding the value of their property. Swee encouraged sellers to research their land and evaluate multiple marketing options before making a decision.
LEARN MORE: www.asfmra.org
