U.S. farmland values grew at their slowest pace in six years, with some areas within the Corn Belt posting a decline in values, according to the latest report issued by the U.S. Department of Agriculture (USDA).

 

On a nationwide basis, farm values (including land and buildings) increased 2.4%, to an average value of $3,020 per acre for the 12 months ending June 1 according to the USDA 2015 Land Values report – significantly down from the 8.1% growth posted in 2014, and the lowest rate of growth since 2010.

 

If considering only cropland, national values increased by 0.7% to $4,130 per acre in fiscal year 2015, a steep decline from the 7.6% growth posted in 2014.

 

Regionally, the ongoing drought in California did not seem to have much of a negative effect on cropland values (although pastureland values remained flat). Across the state, average cropland values increased by 5.4% to $10,690 per acre – exceeding the 2.8% growth seen in the previous year.

 

Cropland values across the country’s Corn Belt including Illinois, Indiana, Iowa, Missouri, and Ohio, saw a decrease in average value of 2.3% over the past 12 months to $6,840 per acre, representing the first decline in value for the region since 2009.

 

Iowa had the largest drop in cropland values within the Corn Belt region, seeing a decline in values of 6.3% to an average value of $8,200 per acre, compared to a growth in values of 9.4% for the previous year.

 

Minnesota’s cropland values were also down in this year’s report, falling by 2.5% to an average value of $4,750 per acre, but in strong contrast, the state’s pastureland values were up by 18.8% from the previous year.

 

Running against the trend, the state of Texas posted an increase in cropland values of 9.5% in the 2015 report to a value of $1,840 per acre after posting an increase of 10.5% in value in the 2014 report. The state’s pastureland posted a more modest increase in value of 1.3% for the past 12 months.