The average value of U.S. farmland increased by 8% with the highest increase seen in the northern Plains according to the U.S. Department of Agriculture (USDA). In its annual report based on a survey of 11,000 parcels of land, the USDA reports that U.S. farm real estate values, which include both land and buildings increased 8.1% year over year in 2014 to average $2,950 per acre. The agency found that land values in the northern Plains increased the most at 16.3% year over year. Economists are watching land values closely and will be tracking farmland sales this fall as grain prices have fallen by approximately 40% over the past year. The report also indicates that average U.S. cropland values have also increased by 7.6% year over year, or $290 per acre to $4,100 per acre. Cropland in the Corn Belt increased in value by 8.2% to $7,000 per acre with Iowa leading the Midwest region with average farmland prices at $8,750 per acre – a 9.4% increase over last year. Cropland in the northern Plains saw the biggest year over year increase of any region – climbing 13.6% over 2013.
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