Farmland Price Index Update - Q1 2025

The Farmer Mac Farmland Price Index powered by AcreValue® (FPI) is a proprietary index developed by Farmer Mac and AcreValue. It is built upon raw farm sales data on a per-acre basis, with each sale weighted based on the value of agricultural production within the property state.

Transaction data for Q1 2025 showed the FPI dropping to $8,164 per acre, 3% lower than $8,298 per acre in Q1 2024. At the same time, revisions were made to previous FPI values, including lifting the Q4 2024 average to $8,404 per acre based on updates to the previous quarter’s data.

The plateauing in farmland values mirrors trends in other regional indices. This includes the Federal Reserve Bank of Kansas City, which reported non-irrigated farmland values were largely flat in the Tenth District heading into this year. The Federal Reserve Bank of Chicago reported a decline in average farm real estate values to end 2024, the first such decline in five years.

Farmland values continue to be pulled in different directions nationally. Across many Western and Southwest states, increased water regulation and tighter profitability for numerous permanent crops over the last several years have reduced buyer enthusiasm for farmland. At the same time, robust farm incomes over the past several years, which received a boost from government payments this spring, are helping lift farmland values in other regions.

Uncertainty surrounding trade is likely to influence FPI for the remainder of 2025. Potential new trade deals could provide a significant boost to U.S. agricultural commodity prices this year, which would likely have a spillover impact on farmland values. Conversely, if U.S. commodities face restricted access to global markets due to tariffs or restrictions, farmland value growth could continue to plateau this year.

About the Index

The Farmer Mac Farmland Price Index powered by AcreValue® offers a quarterly snapshot of U.S. farmland value trends using sales transaction and appraisal data, validated with Farmer Mac market insights. Published on Farmer Mac's website and Bloomberg (FAMCFPI), the index provides farmers, lenders, investors, and policymakers with a timely, data-driven view of national farmland market conditions.

Farmland Price Index Disclaimer

The Farmer Mac Farmland Price Index powered by AcreValue® (“FPI”), including related data and analyses, is provided for general informational purposes only and is not intended for investment or trading purposes or as investment, financial, tax, or legal advice. The FPI is not intended to constitute or substitute for an appraisal or other determination of the value of any particular property and should not be relied upon for purposes of valuing any particular property or making any lending, investment, transaction, or trading decision. Historical changes in the FPI are not indicative of future changes in farmland values.

The FPI is based on information that Farmer Mac believes to be reliable; however, Farmer Mac does not guarantee the accuracy, completeness, timeliness, usefulness, or suitability of the FPI or any data or information included in or underlying the FPI. The FPI and its underlying data may be revised or updated from time to time without notice. Farmer Mac makes no representation or warranty, express or implied, regarding the FPI, its suitability for any particular purpose, or any results obtained from its use.

To the fullest extent permitted by applicable law, Farmer Mac disclaims liability for any errors, omissions, or interruptions in the FPI or for any losses arising from or related to the use of or reliance upon the FPI or related data or analyses, including any indirect, incidental, special, consequential, exemplary, or punitive damages, or lost profits.

The FPI and related data and analyses are proprietary and may not be reproduced, republished, or distributed, in whole or in substantial part, without Farmer Mac’s prior written permission, except for personal, noncommercial use that does not involve further publication or distribution. For additional information regarding the FPI, please contact FarmIndex@FarmerMac.com.