Farmland Price Index Update – Q3 2025

The Farmland Price Index (FPI) declined modestly in Q3 2025 according to the initial data. The modest drop marked a continuation of the pullback in farmland transaction prices nationally. Still, strong farm incomes forecast for 2025, partially due to increased government support payments, continue to provide reinforcement for farmland values overall.

Transaction data for Q3 2025 showed a decline in the Farmer Mac Farmland Price Index powered by AcreValue (FPI), which fell to $7,899 per acre—down 3% from $8,165 per acre in Q3 2024. At the same time, revisions were made to earlier FPI values, including raising the Q2 2025 average to $7,972 per acre, reflecting newly reported transactions. The increase was largely driven by higher average sales prices in several key agricultural states.

The FPI continues to show a modest pullback in average transaction prices across several key agricultural states. Along the West Coast, for example, various permanent crops have faced weak profitability in recent years, pulling down average transaction prices for that region. In other regions, the story in farmland prices is more nuanced. Crop producer profitability has been squeezed by declining commodity prices and elevated input costs, putting modest downward pressure on prices. However, livestock profitability has increased significantly in 2025, especially among cattle ranchers. The robust profitability of livestock producers, combined with near-record government ag payments, has helped lift farmland prices in many regions and kept the national FPI largely stable.

The plateauing of the FPI mirrors broader trends in farmland indices. After a 1% annual decrease in 2024—the first decline in 5 years—the Federal Reserve Bank of Chicago reported that farmland values rose 3% in the Seventh District in Q2 2025. Meanwhile, the Federal Reserve Banks of Kansas City and St. Louis reported that non-irrigated farmland values decreased 2% and 3% in Q2 2025 in the Tenth and Eighth Districts, respectively. While a bifurcation in prices has occurred across regions, the small magnitude of price changes underscores the relative equilibrium in farmland markets.

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