USDA Releases Cash Rent Average, Agricultural Land Reports

Farm Real Estate Values Increase in 2023

According to a report released on Monday by American Farm Bureau Foundation Market Intel economist Daniel Much, farm real estate values in the United States increased by 7.4% in 2023 compared to the previous year. This increase is lower than the 12% bump observed between 2021 and 2022, which was the largest change since 2006 when values increased by 14% over 2005. However, excluding last year, the 2023 farm real estate values had the largest percentage increase since 2014. In terms of dollar value, the $280 per acre increase over 2022 is the second-highest increase since the USDA began the survey in 1997.

Estimates Based on June Area Survey

The estimates are based on the June Area Survey, which utilizes approximately 11,000 one square mile segments of land. The land is grouped into economic regions including Northeast, Lake States, Corn Belt, Northern Plains, Appalachian, Southeast, Delta States, Southern Plains, Mountain, and Pacific.

Enumerators collecting data for the June Area Survey contact all agricultural producers operating land within the boundaries of the sampled land segments. They record land value information for cropland and pasture within these segments, as well as an estimated value of all land and buildings for the operator’s entire farming operation and the estimated percent change from the previous year.

Report Highlights

• The United States farm real estate value, which measures the value of all land and buildings on farms, averaged $4,080 per acre for 2023, representing a $280 per acre (7.4%) increase from 2022.
• The United States cropland value averaged $5,460 per acre, showing an increase of $410 per acre (8.1%) from the previous year.
• The United States pasture value averaged $1,760 per acre, indicating an increase of $110 per acre (6.7%) from 2022.

Farm Real Estate Value Per Acre By Region

• The Northeast region (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont) reported an average farm real estate value per acre of $6,740, up 3.9% from 2022. Rhode Island had the highest farm real estate value per acre in this grouping at $18,300, up 4.6% from the previous year.
• Each state in the United States saw an increase in farm real estate values in 2023, with the highest changes observed in California, Iowa, Illinois, Indiana, Ohio, Rhode Island, and Pennsylvania.
• The Lake States of Michigan, Minnesota, and Wisconsin reported an average farm real estate value of $6,450 per acre, representing an 8.2% change from 2022. Minnesota had the highest value in this group at $6,600 per acre, up 7.3% from the previous year.
• The Corn Belt states of Illinois, Indiana, Iowa, Missouri, and Ohio reported an average farm real estate value of $8,100 per acre, showing a 7.1% increase from 2022.
• The Northern Plains states, including Kansas, Nebraska, North Dakota, and South Dakota, reported an average farm real estate value of $3,160 per acre, up by 13.7% from 2022.
• The Appalachian economic region consisting of Kentucky, North Carolina, Tennessee, Virginia, and West Virginia reported an average farm real estate value of $4,980 per acre, representing a 7.8% increase from 2022.
• The Southeast states of Alabama, Florida, Georgia, and South Carolina reported an average farm real estate value of $4,840 per acre, up by 5.7% from the previous year.
• The Delta economic region comprising Arkansas, Louisiana, and Mississippi reported an average farm real estate value of $3,400 per acre, with only a 1.8% increase from 2022.
• Oklahoma and Texas in the Southern Plains region reported an average farm real estate value of $2,800 per acre, showing a 9.4% increase from 2022.
• The Mountain region (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming) reported the lowest farm real estate value per acre at $1,450, up by 4.3% from 2022.
• The Pacific region consisting of California, Oregon, and Washington reported an average farm real estate value of $7,270 per acre.

The full report can be downloaded here.

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SDGs, Targets, and Indicators Identified in the Article

1. SDG 1: No Poverty

   • Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance.
   • Indicator 1.4.2: Proportion of total adult population with secure tenure rights to land, with legally recognized documentation and who perceive their rights to land as secure, by sex and by type of tenure.

2. SDG 2: Zero Hunger

   • Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.
   • Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management in all countries.
   • Indicator 11.3.1: Ratio of land consumption rate to population growth rate.

Table: SDGs, Targets, and Indicators

Analysis

The article discusses the increase in farm real estate values in the United States. Based on the content of the article, the following SDGs, targets, and indicators can be identified:

SDG 1: No Poverty

The increase in farm real estate values can have implications for poverty reduction. Target 1.4 aims to ensure equal rights to economic resources and access to land. The indicator 1.4.2 measures the proportion of the population with secure tenure rights to land. The increase in farm real estate values may impact the accessibility and affordability of land for small-scale farmers and vulnerable populations.

SDG 2: Zero Hunger

The increase in agricultural productivity and incomes of small-scale food producers is a target under SDG 2.3. Access to land is crucial for small-scale farmers to increase productivity and generate income. The indicator 2.3.1 measures the volume of production per labor unit, which can be influenced by secure and equal access to land. The increase in farm real estate values may affect the affordability and accessibility of land for small-scale food producers, potentially impacting their ability to achieve higher productivity and incomes.

SDG 11: Sustainable Cities and Communities

The article mentions different economic regions and their respective farm real estate values. Target 11.3 focuses on sustainable urbanization and human settlement planning. The indicator 11.3.1 measures the ratio of land consumption rate to population growth rate, indicating the sustainability of land use in urban areas. While the article primarily discusses rural farm real estate values, the information about land values and regions can provide insights into land use patterns and potential impacts on urbanization and sustainable development.

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