Top 10 States for Ag Land Value

As financial markets become more volatile, Farmers National's Paul Schadegg expects high-quality, productive land to hold, or even increase, in value.

However, this senior vice president of real estate operations said he's seen some value decreases in lower classes of ag land across 2023.

Because climatic episodes, especially drought, affect productivity, Schadegg believes climate plays a role in today's land market.

But he stressed that no one really knows how much of a role it plays from year to year.

"We do see decreases in land prices where they are experiencing drought," he explained. "That is due to crop failures. And we know that puts pressure on land prices."

One way to connect that line between what an acre of land produces and what it's worth is to compare value of crop production in a state and its overall share of U.S. value for crop production, with land values. The latest USDA farm finance indicators showed these states led in value of crop production. They also took top spots for land values.

TOP 10 STATES

1. CALIFORNIA. Total value of crop production was $37.87 billion, a 14.3% share of the U.S. Cropland value averaging $15,880 per acre in 2023, a 3% increase from a year earlier.

2. ILLINOIS. Total value of crop production was $24.75 billion, a 9.3% share of the U.S. Cropland value averaging $9,580 per acre, a 7% increase from a year ago.

3. IOWA. Total value of crop production was $23.8 billion, a 9% share of the U.S. Cropland value averaging $10,100 per acre, an 8% increase from a year ago.

4. MINNESOTA. Total value of crop production was $16.02 billion, a 6% share of the U.S. Cropland value averaging $6,820 per acre, a 10% increase from a year earlier.

5. NEBRASKA. Total value of crop production was $13.89 billion, a 5.2% share of the U.S. Cropland value averaging $6,830 per acre, a 13.8% increase from a year earlier.

6. INDIANA. Total value of crop production was $11.4 billion, a 4.3% share of the U.S. Cropland value averaging $8,400 per acre, an 8.4% increase from a year earlier.

7. NORTH DAKOTA. Total value of crop production was $10.9 billion, a 4.1% share of the U.S. Cropland value averaging $2,660 per acre, a 13.2% increase from a year earlier.

8. KANSAS. Total value of crop production was $8.75 billion, a 3.3% share of the U.S. Cropland value averaging $3,440 per acre, a 16.6% increase from a year earlier.

9. OHIO. Total value of crop production was $8.51 billion, a 3.2% share of the U.S. Cropland value averaging $8,200 per acre, an 8.6% increase from a year earlier.

10. MISSOURI. Total value of crop production was $8.34 billion, a 3.1% share of the U.S. Cropland value averaging $4,610 per acre, a 6.7% increase from a year earlier.

Victoria Myers can be reached at vicki.myers@dtn.com

(c) Copyright 2023 DTN, LLC. All rights reserved.