Farmland values in the U.S. increased again in 2025, but the rate of growth is slowing down, according to a recent report from the USDA.
The average value of farmland and buildings went up 4.3% to $4,350 per acre, an increase of $180 from last year.
This is the fifth year in a row that farmland values have gone up, but the increase is smaller than in previous years.
Cropland values also rose, reaching $5,830 per acre, up 4.7%.
Pastureland values increased by 5% to $1,920 per acre.
Cash rents for farmland changed little, with cropland rents up slightly to $161 per acre and pastureland rents staying the same.
The growth in land values has slowed since the big increases seen in 2021 and 2022, which were driven by high crop prices.
Much of the current support comes from federal disaster and economic aid rather than stronger market demand.
Farmland values are highest in California and the Northeastern states because of specialty crops and land development.
The Midwest still has valuable farmland, but price growth has slowed as crop prices have dropped.
Michigan saw the biggest increase in farmland values this year at 7.8%.
Experts say that even though land prices are still high, lower crop prices and rising costs are making it harder for farmers who rent land to make a profit.
The USDA will release updated farm income numbers in early September.
