U.S. farmland values reached record highs in 2025, though growth is slowing. The USDA reports the national average for farm real estate climbed 4.3% to $4,350 per acre. This is a smaller increase than in prior years and signals a cooling market.

Cropland rose 4.7% to $5,830 per acre, while pastureland increased 5% to $1,920. Michigan saw the highest state-level growth at 7.8%. No state recorded double-digit gains. The Highest-value land remained concentrated in the Northeast and California.

Rental rates also hit new highs, but growth slowed. Cropland rents rose just 0.6%. Pastureland rents remained flat. Washington, Montana and Alabama led the rent increases. Hawaii and Wyoming rents declined. Margins for farmers reliant on rented land remain tight.

Federal aid, including the $30 billion from the American Relief Act of 2025, is propping up land values and helping farmers maintain income and loan eligibility amid softening commodity prices and high input costs. Beyond agriculture, investor interest, solar development and remote work migration are influencing farmland demand.

Read more on farmland values here.