Landowners across the U.S. are watching farmland values closely in 2025. After several years of rapid appreciation, this year looks more balanced. Whether you’re planning to sell, hold, or invest, Active Acres Properties LLC brings you the latest national outlook, state-by-state trends, and economic drivers to help you make smarter land decisions.
National Market Outlook
Farmland values continue to rise, though at a slower pace. In 2025, the U.S. average farmland value reached $4,080 per acre, up 7.4% from last year. Adjusted for inflation, that translates into a real gain of 3.9% (Source: USDA ERS).
According to Active Acres Properties LLC, farmland now represents $3.18 trillion in asset value, making up nearly 83% of U.S. farm-related wealth. While demand remains strong, tighter lending conditions and high interest rates are tempering growth in some regions.
State-by-State Snapshot
Midwest
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Iowa – $11,467/acre, down 3.1% (Source: American Farmland Owner)
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Illinois – Down 3%, pressured by higher costs and weaker crop revenues
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Indiana – Stable, supported by consistent buyer demand
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Minnesota – Up 1.2% due to limited supply (Source: FCSAmerica)
Great Plains
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Kansas – Up 2.8%, grazing land outperforming cropland (Source: FCSAmerica)
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Nebraska – Down slightly by 0.4% (Source: FCSAmerica)
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South Dakota – Strong 9.5% increase, among the best in the nation (Source: FCSAmerica)
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North Dakota – Up 1.7%, mostly in eastern counties (Source: American Ag Network)
Northeast
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Rhode Island – Highest in the nation, $17,500/acre (Source: World Population Review)
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New Jersey – Second-highest at $15,400/acre (Source: World Population Review)
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Massachusetts & Connecticut – Still above $14,000/acre
Southeast
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Georgia – Up 4.2%, driven by growth and development (Source: USDA NASS)
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Florida – $6,650/acre, rising 5.8% (Source: USDA NASS)
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North Carolina – Up 4.5% thanks to investor activity (Source: USDA NASS)
Southwest & West
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Texas – Modest 1.9% gain; drought limits further growth (Source: Texas Real Estate Research Center)
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New Mexico – $610/acre, one of the cheapest nationwide (Source: World Population Review)
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Arizona – Down 1.2% due to water rights issues (Source: American Farmland Owner)
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California – Down 2.3% overall, though premium regions remain strong (Source: California Chapter ASFMRA)
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Wyoming – $850/acre, with both low demand and low supply (Source: World Population Review)
What’s Driving the Market in 2025
Active Acres Properties LLC highlights four key factors influencing land values this year:
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High Interest Rates – Farmers face stricter lending terms, slowing expansion.
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Lower Commodity Prices – Corn, soybeans, and wheat prices are weaker, reducing incomes.
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Increased Federal Support – Government farm programs reached $42.4 billion in 2025 (Source: AgAmerica).
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Investor Activity – Institutional buyers remain present but still own under 2% of U.S. farmland (Source: Investigate Midwest).
Emerging Trends
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Generational Shift – Over 40% of U.S. farmland is owned by those 65+, signaling major transitions ahead (Source: Investigate Midwest).
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Agrivoltaics – Combining farming with solar energy is expanding, now with 500+ U.S. sites.
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Foreign Ownership Scrutiny – New laws introduced in 2025 increase reporting and transparency requirements.
Key Takeaways from Active Acres Properties LLC
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Farmland growth has slowed but remains stable.
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Winners: South Dakota, Georgia, and Florida saw healthy gains.
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Laggards: Iowa, Arizona, and California experienced declines.
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Interest rates, commodity prices, and federal support remain the top market drivers.
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Solar farming, generational turnover, and tighter foreign investment rules are reshaping land ownership.
Conclusion
Farmland continues to be one of the most resilient assets in 2025. However, instead of universal growth, the market now reflects more region-specific shifts. Sellers should carefully consider timing, while buyers may find opportunities in states where values have leveled off. As always, Active Acres Properties LLC recommends staying informed with both national insights and local data before making land decisions.
FAQs
Q: Which states have the cheapest farmland in 2025?
A: New Mexico ($610/acre), Wyoming ($850/acre), and Mississippi ($2,700/acre).
Q: Is farmland still a good investment this year?
A: Yes, particularly in regions with steady demand and rising populations.
Q: What factors can cause farmland prices to drop?
A: High interest rates, weaker commodity prices, water issues, and reduced investor activity.
Q: How much U.S. farmland is foreign-owned?
A: Less than 3%, though stricter regulations are now in place.
Q: What is agrivoltaics?
A: The dual use of farmland for agriculture and solar power—an emerging trend creating new income streams for landowners.
Disclaimer
This article by Active Acres Properties LLC is for informational purposes only and should not be considered legal, financial, tax, or real estate advice. Data sources are believed accurate at the time of writing but may change. Always consult professionals for guidance specific to your situation.