No Change in Land Values For 2020
By American Farm Bureau
The average value of agricultural cropland is $4,100 per acre in 2020, unchanged from 2019 but in line with the record highs seen in 2019 and 2015, according to USDA’s recently released 2020 Land Values report. Similarly, the average value of cropland, including all land and buildings on farms, was $3,160 per acre for 2020, unchanged from 2019’s record high. The average value for pastureland was $1,400 per acre for 2020, again unchanged from 2019. Cash rental rates for cropland averaged $139 per acre in 2020, down $1 per acre from 2019.
The stability in agricultural land values and cash rents occurs amid continued pressure on farm income and commodity prices. This stability is likely a result of low interest rates (the 10-year Treasury is less than 1%), a low turnover ratio for agricultural cropland and a competitive cash rent market for farmers seeking to capture economies of scale. Importantly, the cash rental rates were negotiated prior to the impact of COVID-19 on crop prices. Figure 1 highlights the average cropland and cash rental rate values.