U.S. farmland values in 2025 are expected to continue climbing, albeit at a slower pace. The USDA’s 2025 Land Values Summary Report shows farm real estate—including land and buildings—averaging $4,350 per acre, up $180 from last year. This 4.3 percent gain marks the fifth straight year of growth, but it is notably less dramatic than recent surges.
Cropland and Pastureland Hit Record Levels
Cropland values reached a record high of $5,830 per acre, up 4.7 percent, while pastureland also hit a high at an average of $1,920 per acre with a 5 percent increase. Though prices remain strong, they reflect a gradual cooling from peak years where annual increases soared above 10 percent.
Regional Trends Reflect Varied Growth
Several states continue to see solid gains in farmland values in 2025. Michigan led with a 7.8 percent increase, followed closely by Tennessee and South Dakota. In contrast, states in the Northeast and California maintain the highest overall land values, reaching $22,500 and $14,900 per acre respectively.
Meanwhile, in the Corn Belt, connections like Iowa, Nebraska, and South Dakota show year-to-date values leveling off. FCS America reports minimal quarterly growth in those regions, with Iowa and Nebraska even experiencing slight declines.
Rental Rates Rise, but Momentum Slows
Cash rent for cropland in 2025 nudged higher, increasing 0.6 percent to $161 per acre. Irrigated cropland rents declined slightly while non‑irrigated land rose modestly. Pastureland cash rent held steady at $15.50 per acre.
Slower growth in both land values and rents may limit producers’ ability to leverage equity for operating or expansion needs.
What Is Fueling the Slowdown?
The moderation in farmland values in 2025 stems from multiple factors. Higher interest rates are beginning to catch up with the markets, and agricultural revenue has softened in recent seasons.
In the Midwest, states like Kansas and Iowa experienced massive growth between 2021 and 2022, with increases of 22.8 percent and nearly 20 percent, respectively. That growth has since tapered off to single digits, reflecting a broader market shift.
What Farmers and Buyers Should Know
- Land values remain high and continue to increase in most areas
- Growth rates have decelerated from the surges of prior years
- Rental rates follow a similar trend with modest increases
- Regions may experience different trends depending on commodity prices, interest rates, and local market drivers
- Buyers and sellers now operate in a more deliberate, measured real estate market
Summary
Farmland values in 2025 remain remarkably strong across the country, hitting record highs for both cropland and pastureland. Overall growth has eased from previous peaks and entered a more balanced phase. Factors like interest rates, commodity markets, and regional differences will play key roles in future trends.
