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USDA says farmland value doubled since 2000
The USDA says farmland value doubled in 15 years, but there are regions with declining value now.
A study by the USDA’s Economic Research Service says farm real estate was averaging $1,483 dollars per acre in 2000 but jumped to $3,060 dollars an acre in 2015 before leveling off. Researchers say cropland values went up the most in the Corn Belt, Northern Plains, Lake States, and the Delta States. The study shows these same regions had lower land appreciation after 2015 because of low commodity prices, which triggered huge drops in net farm income and limiting the purchasing power of many farmers.
The USDA says the higher land values of the early 2000’s allowed many farmers to borrow more to purchase land instead of renting it.
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