The initial estimate for the Q1 FPI showed farmland prices declining modestly in Q1. The moderate pullback comes amid a slowdown in farmland values in several key agricultural states. Still, strong overall farm incomes continue to provide support for farmland values nationally, with many regions continuing to see rising prices.
Note: 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.
The Farmer Mac Farmland Price Index powered by AcreValue (FPI) and related data and analyses are provided by Farmer Mac for your personal information only and are not intended for investment or trading purposes. Neither the FPI nor the related data and analyses are appropriate for the purposes of evaluating or making a decision to carry out a transaction or trade. Further, they do not provide any form of investment, tax or legal advice or make any recommendations regarding particular financial instruments, investments or products. Farmer Mac does not guarantee the accuracy, usefulness and/or completeness of any FPI index, any data included therein, or any data from which it is based, and Farmer Mac shall have no liability for any errors, omissions, or interruptions therein. Farmer Make makes no warranties, express or implied, as to results to be obtained from use of information provided by Farmer Mac and used in the FPI indices, and Farmer Mac expressly disclaims all warranties of suitability with respect thereto. While Farmer Mac has obtained information believed to be reliable, Farmer Mac shall not be liable for any claims or losses of any nature in connection with information contained in the FPI indices or any data based on the FPI indices, including but not limited to, lost profits or punitive or consequential damages, even if it is advised on the possibility of same. Farmer Mac makes no representation with respect to the accuracy, usefulness or completeness of these materials, the content of which may change without notice. The FPI indices are periodically revised and updated to include data that was not previously reported. The FPI and related data and analyses are proprietary and without prior written permission from Farmer Mac, they may not be reproduced, in whole or in part, in any form, other than for your own personal, noncommercial use. For further information about the FPI and related data and analyses, please contact Farmer Mac at farmindex@farmermac.com.
