The data is in and has been collected by the USDA National Agricultural Statistics Service (NASS). The report shows that land values and cash rent are rising in 2023. For anyone unfamiliar, cash rent refers to a producer that rents land from another landowner for a fixed cash amount of crop or crop proceeds. A landowner may choose this option for freedom from making operating and marketing decisions. The tenant has full privilege to plan and develop the cropping programs. The tenant bears the risk and returns from changing prices, yields, and costs. A cash rental rate can be based on a farm’s average yields, for example, a 5- or 10-year average.

The NDSA conducts county-level surveys for cash rents each year in every state except Alaska. The estimates are then reported in August annually. In addition, USDA collects information on the average value per acre for farm real estate, including irrigated and non-irrigated cropland and pastureland. Both reports indicated higher cash rents and land values nationally.

If you review the graphic, it states that Corder and Associates’ services show an increase but are not among the highest change. On average, farmers paid a cash rent of $237 per acre for irrigated cropland in 2023. This price is up from $227 per acre in 2022. The state of California has the highest cash rent cost at $486 per acre. Wyoming and Montana are among the lowest cash rents for irrigated cropland. Wyoming farmers pay $86.50 per acre, and in Montana, $98 per acre.

Agricultural land values also display an increase from 2022 in the United States. Last year (2021-2022) saw the highest increase since 2005 at 12%. Land values saw a 7.4% from 2022-2023. Estimates are based on 11,000 one-square-mile segments of land. The land is then grouped into economic regions of Northeast, Lake States, Corn Belt, Northern Plains, Appalachian, Southeast, Delta States, Southern Plains, Mountain, and Pacific.

Key Numbers

• The US farm real estate value averaged $4,080 per acre for 2023, up $280 per acre from 2022.
• The US cropland value averaged $5,460 per acre, up $410 per acre from 2022.
• The US pasture value averaged $1,760 per acre, up $110 per acre from 2022.
• Northern Plains states, including North Dakota, reported an average farm real estate value of $3,160 per acre, up from 13.7% in 2022.
• The Mountain region, including Montana, Colorado, and Wyoming, reported the lowest farm rest value per acre at $1,450, up from 4.3% in

If you’re looking to invest by purchasing or selling farm or ranch land in Montana, Colorado, Wyoming, or North Dakota, ask Corder and Associates to assist! Our team members consist of agents in the ag community and industry. We know the market values and understand the trends. Are you hoping to lease out your land? We help with that too! Give us a call!