Ag Land and Values:

What’s the Market Doing?

The USDA’s National Agricultural Statistics Service (NASS) has released its 2025 Agricultural Land Values Summary, providing a snapshot of Montana’s agricultural land market. The report shows that statewide land values have largely stabilized after several years of upward movement. While the survey focuses only on production agriculture land and does not include recreational or amenity-driven properties, it remains a reliable indicator of overall market trends. Reported per-acre values tend to be lower than actual sale prices because higher-value recreational tracts are excluded, but the year-to-year shifts closely track market sentiment. The data in the report can lag behind real-time conditions, as evidenced by the delayed reflection of increases from 2020 to 2023; however, the long-term trend remains strong. Montana’s agricultural land market continues to benefit from robust cattle prices, limited availability of quality acreage, steady demand from both in-state producers and out-of-state buyers, increased interest in lifestyle and recreational properties, and the appeal of land as a hedge against inflation. For those buying, selling, or investing in Montana land, these trends confirm the market’s ongoing strength and stability.

2025 Agricultural Land Values: Wyoming and Colorado Market Trends

In 2025, agricultural land values across the West are showing signs of stability with pockets of softening, reflecting a broader national trend of cooling markets after several years of rapid appreciation. High interest rates, moderating commodity prices, and tighter credit conditions are slowing demand, but limited supply and the enduring value of productive land continue to support the market.

Wyoming Land Values Hold Steady

Wyoming’s agricultural land values remain mostly stable in 2025, though a softer tone is evident compared to recent years.

• Overall Real Estate Values:The state’s average farm real estate value (land and buildings) increased 2.6% to $1,000 per acre.
• Cropland Values:Irrigated cropland rose 1.8% to $3,360 per acre, while non-irrigated land climbed 3.7% to $1,130 per acre, bringing the state’s average cropland value to $2,000 per acre.
• Market Drivers:Farmers and ranchers remain the primary buyers, but higher borrowing costs and moderating commodity prices are contributing to a more measured pace in sales activity.

Nationally, farm real estate values increased by 4.3% to a record $4,350 per acre in 2025. While this is still growth, it represents a slowdown from the stronger appreciation seen in past years. Buyers remain cautious in the face of high interest rates and input costs, yet the limited supply of quality land and continued strength in the cattle market provide a solid foundation for Wyoming’s values.

Colorado’s Market: A Story of Contrasts

Colorado’s agricultural land market in 2025 reflects the state’s regional diversity, with performance varying sharply between dryland areas and irrigated farms.

• Eastern Plains Trends: Dryland values plateaued or declined slightly due to weaker prices for wheat, corn, and hay, combined with higher interest rates. Farmers in crop-heavy regions face tighter margins, leading to reduced demand.
• Strength in Irrigated Land: Properties with senior water rights in basins such as the South Platte and Arkansas River continue to hold or gain value. Scarcity of water and urban demand reinforce the appeal of irrigated farmland.
• Interest Rate Pressures: Rising loan costs are dampening speculative buying and limiting affordability, particularly for operations driven by commodity agriculture.
• Diverse Regional Markets: While the Eastern Plains face challenges, recreational ranches and irrigated parcels with reliable water access remain strong investments, drawing strategic buyers and investors.

Credit conditions have tightened, and lower farm incomes in late 2024 and 2025 have applied additional financial pressure to some producers. Still, demand for high-quality irrigated land and properties with reliable water sources underscores their long-term value.

Outlook

The outlook for Wyoming and Colorado in 2025 points to continued divergence:

• Wyoming remains steady, supported by cattle markets and limited land supply, though growth is modest.
• Colorado shows a sharper split between irrigated and dryland values, with water access serving as the defining factor in property performance.

Despite current headwinds from interest rates and commodity prices, the long-term fundamentals of agricultural land in both states remain strong. Quality land—particularly irrigated acres with senior water rights—continues to be recognized as a resilient and strategic investment.