The USDA National Agricultural Statistics Service released its annual report on agricultural land values across the United States. To view the full report, click here. This report is generated based on survey results mailed in from landowners across the United States.
A few key definitions are important to keep in mind. First, a “farm” is any establishment where at least $1,000 in agricultural products were or normally would be sold during the year. So, clearly, this is an extremely broad definition. Second, “farm real estate value” is the value at which all land and building used for agricultural production, including homes, could be sold under current market conditions. Third, “cropland” includes land used to grow field crops, vegetables, and hay. It also includes land alternated between cropland and pastureland, as well as idle cropland or cropland enrolled in government conservation programs. Fourth, “irrigated cropland” includes all land that has the facilities and equipment to irrigate during a current year, even if irrigation does not occur. Finally, “pastureland” is that land normally grazed by livestock, even if it did not currently have livestock on it at the time of the survey.
Average Farm Real Estate Value
The average farm real estate value across the United States is $3,080/acre. This is up 2.3% from $3,010/acre in 2016. The highest value reported was $13,800/acre in Rhode Island and the lowest was in New Mexico at $530/acre.
In Texas, the average farm real estate value for 2017 is $2,090, up 6.6% from last year.
Average Cropland Value
The average cropland value–including both irrigated and non-irrigated cropland–across the US remained constant from 2016 and again is reported at $4,090/acre. The highest values came from New Jersey at $13,000/acre, and the lowest from Montana at $1,020/acre.
Looking at the Texas data, values have increased 6.3% from last year and are $2,010 for 2017. Because of the significant irrigated acreage in the state, NASS breaks down values for cropland into an irrigated and non-irrigated category. Irrigated land in Texas has an average value of $2,200/acre (up 7.3% from last year), while non-irrigated cropland has a value of $1,980/acre (up 6.5% from last year).
Average Pastureland Value
The average pastureland value across the US increased slightly (1.5%) from $1,330 in 2016 to $1,350 this year. Again, New Jersey posted the highest value at $12,500/acre, and New Mexico reported the lowest at $360/acre.
In Texas, the average value for pastureland is $1,650, up 3.1% from last year.