Farmland Price Index Update – Q4 2025

Transaction data for Q4 2025 showed a decline in the Farmer Mac Farmland Price Index powered by AcreValue (FPI). The FPI average was at $8,260 per acre, down 2% from $8,446 per acre in Q4 2024. At the same time, revisions were made to earlier FPI values, including raising the Q3 2025 average to $8,095 per acre, reflecting newly reported transactions with 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 the region’s average transaction prices. In other regions, the story 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 was relatively strong 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 regional bifurcation of transaction prices pulling the FPI in different directions mirrors broader trends in farmland indices. After a 1% annual decrease in 2024—the first decline in five years—the Federal Reserve Bank of Chicago reported that farmland values rose 6% in the Seventh District in 2025. Meanwhile, the Federal Reserve Banks of Kansas City and St. Louis reported that non-irrigated farmland values decreased 0.3% and 0.1% in 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.