USDA Land Values, Cash Rents Surveys
Kansas Sees Highest Percentage Jump in Farmland Values
OMAHA (DTN) -- A USDA survey of farm real estate values shows the average farm increased in value by 12.4% nationally over the past year, with Kansas, Iowa and Nebraska showing the highest growth in farmland values.
USDA's National Agricultural Statistics Service released the survey on farmland values Friday. The report looks at all farm real estate, which averaged $3,800 per acre nationally, up 12.4%. The values come from a June survey and include a sample of about 9,000 tracts of land.
The 12.4% bump for 2022 is the highest jump in overall farmland values in the survey since at least 2007. The Plains and Midwest states saw the highest growth, while some Northeastern states maintained the highest value.
The Corn Belt -- Illinois, Indiana, Iowa, Missouri and Ohio -- saw an average overall bump in values of 14.9%. Northern Plains states -- Kansas, Nebraska, North Dakota and South Dakota -- combined saw a 19.8% increase in farmland values.
Kansas saw the highest bump in average farmland values, increasing 25.2% to $2,630 average per acre. Iowa came in second, increasing 21.4% to $9,400 per acre. Nebraska came in third, rising 21% to $3,750 per acre.
For overall farmland values, Rhode Island has the highest average at $17,500 per acre, up 6.7% from a year ago. New Jersey land values are the second highest at $15,400 an acre, up 6.9%, and Massachusetts comes in third at $15,200 an acre, up 10.9% from 2021.
The lowest overall farmland values came in the Mountain states. New Mexico farmland averaged $610 an acre, up 1.7%. Wyoming came in at $850 an acre, up 7.6%. Montana farmland averaged $1,030 an acre, up 10.8% in value.
Looking strictly at cropland acres, values nationally averaged $5,050 per acre, up 14.3% from last year.
Kansas landowners once again saw the highest growth at 24.5% higher than last year, coming in at an average of $2,950 an acre. Nebraska came in second with 21% growth, hitting an average of $6,000 an acre. Iowa cropland values rose 19.7%, hitting $9,350 an acre.
The most expensive cropland in the country is in New Jersey, averaging $15,900 an acre, or 7.4% higher than 2021. California came in second at $15,410 per acre, up 11.2% from a year ago. Collectively, Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, lumped in the Northeast as "other states," averaged $9,530 per acre. Iowa came in right below at $9,350.
The most economical states for cropland were Montana at $1,160 an acre, up 10.5%; next was Wyoming at $1,720 an acre, up 7.5%; and New Mexico at $1,790 an acre, up 7.8%.
IRRIGATED VS. DRYLAND
The survey also shows some spreads between irrigated and non-irrigated cropland.
In Washington state, irrigated cropland is valued at $8,400 an acre, up 7.7%, while dryland acres are valued at $1,450 an acre, a difference of $6,950 per acre.
In California, irrigated cropland is worth $18,100 per acre, up 11% from last year, while non-irrigated ground is $6,600 an acre, a value difference of $11,500.
Irrigated cropland in Utah is valued at $7,250 an acre, up 9% from a year ago, while non-irrigated cropland is valued at $1,650 an acre, a $5,600 difference in value.
Irrigated cropland in Colorado averaged $5,750 an acre, up 10.7%, while non-irrigated ground was $1,600 an acre, a $4,150 difference in value.
In Nebraska, irrigated ground averaged $7,950 per acre, up 21.7%, while non-irrigated ground is valued at an average of $4,800, a difference of $3,150 per acre.
Pasture nationally averaged $1,650 per acre, an increase of 11.5% over 2021.
Idaho had the highest percentage increase for pasture value at 15.9% from last year, coming in at $1,970 per acre. California pasture values rose 14.5% to $3,550 per acre. Texas pasture values rose 13.9% to $2,050 an acre.
The highest-cost state for pasture was Florida at $5,900 per acre, up 6.7%, followed by Georgia at $4,400 per acre, up 8.4%.
The lowest reported cost for pasture was New Mexico at $480 an acre, up 9.1%, followed by Wyoming at $660 per acre, up 8.2%. Arizona and Nevada did not disclose pasture values.
CASH RENT DATA
NASS also released updated 2022 statistics on cash rent for cropland, showing the average cash rent nationally was $148 an acre, while the average irrigated cropland cash rent came in at $227 an acre. Non-irrigated cash rent nationally averaged $135 an acre.
Looking at the "Corn Belt," Iowa's average cash rent overall was $256 an acre, Illinois was $243 an acre, Indiana was $212 an acre and Nebraska was $211 an acre.
Irrigated cash rent in Iowa averaged $252 an acre, Illinois irrigated rent averaged $259 an acre, Indiana averaged $272 an acre and Nebraska averaged $260 an acre.
The full USDA Land Values report can be viewed at https://release.nass.usda.gov/….
Statistics on cash rent can be found at https://quickstats.nass.usda.gov/….
Chris Clayton can be reached at Chris.Clayton@dtn.com
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