Farmland value: What’s an acre worth in the Midsouth? (2024)

National land values summary provided by USDA, National Agricultural Statistics Service.USDA

Farmland valuecontinues itsmeteoric climb, according to the most recent data from USDA. In the 2022 Land Values summary released in August, figures show the average U.S. farm real estate value at $3,800 per acre. That’s a 12.4% jump over 2021 prices.

To add perspective, the year-over-year percentage increase is the third highest in the past four decades. The top two being 2005 (21% increase over 2004) and 2006 (15% increase over 2005).

When looking at just cropland values, the numbers are even higher. U.S. cropland is now averaging $5,050 per acre — a 14% increase over 2021 values. The state with the reported highest cropland value? Rhode Island – where on average, cropland goes for $17,500 per acre.

In the Delta states (Arkansas, Louisiana and Mississippi), farm and cropland values are up, although not as dramatically as some parts of the country. In fact, the region saw the smallest increase in farmland prices in the nation.

Meanwhile, Missouri and Tennessee are seeing land value increases comparable to national averages. Below is the breakdown by state for average farm real estate value in 2022 in the Midsouth. While only portions of Tennessee and Missouri are considered part of the Midsouth region, we have included them for this article.

2022 cropland value by state:

Rent costs

Also in August, USDA released the Cash Rents Survey. The survey results are based on responses from more than 260,000 producers who provide cash rental rates for their local area. FSA uses cash rent county estimates to determine market rates for USDA programs, such as the Conservation Reserve Program. Other state and federal agencies, universities and research groups sometimes use the information, too.

U.S. farmland rent values seem modest in comparison — just under 5%. The U.S. average cash rent of cropland was $148 per acre. Irrigated cropland rent values came in at $227 per acre. The most expensive state to rent cropland in the U.S. is Arizona at $336 per acre. Oklahoma had the lowest cash rent averages at $38 per acre.

Here’s the average cash rent for cropland (irrigated and non-irrigated) in 2022 for the Midsouth:

And here’s the breakdown for cash rent for only irrigated cropland in 2022 for Midsouth states: