By Emmy Powell
Communications Specialist

U.S. agricultural land values and cropland cash rents have reached record highs, according to the U.S. Department of Agriculture’s (USDA)  Land Values 2025 Summary report.

The report, released Aug. 1, reflects an increase on values for the fifth year in a row.

Farm real estate
The farm real estate value is a measurement that includes the value of all land and buildings on farms.

In Texas, the average farm real estate value increased by 6.1% to $2,970 an acre.

The average value for U.S. farmland is up 4.3% at the record high of $4,350 an acre.

Although land values are still rising, the slowing pace signals a market cooling from the rapid appreciation seen over the last few years.

This trend impacts farm finances by limiting equity gains, which reduces producers’ ability to use land as loan collateral. Lenders also may become more cautious if they expect land values to stagnate or decline, American Farm Bureau Federation (AFBF) economists noted in a Market Intel.

Real estate values remain uneven across regions, shaped by land use pressures and local farm profitability. The highest average values are found in California and Northeastern states. Urban proximity and non-agricultural land use potential, particularly in areas with limited available land, are major price drivers in these regions.

Cropland value
Similar to overall agricultural real estate values, the average U.S. cropland value reached record levels in 2025 with a 4.7% increase to $5,832 per acre.  The increase is nearly identical to the last year’s growth but slower than the sharper increases in previous years.

Across the U.S., no state recorded a decrease in average cropland values.

Texas cropland saw a 5.4% increase in price, bringing the average to $2,710 per acre.

Pastureland value
Average U.S. pastureland prices also continued an upward trend, rising 5% to $1,920 an acre. This growth is close to last year’s increase of 5.2% but below the 6.7% increase in 2023 and the steep 11% jump in 2022.

Pastureland values in the U.S. are highest along the East Coast and mid-South. The prices are driven by development pressures, land scarcity and lifestyle demand. Western and Plains states report lower acreage values, in part due to lower land productivity and the amount of federally owned grazeable land.

Texas pastureland prices are up 4.5% at $2,300 an acre.

Cash rents
The USDA report shows average U.S. cropland rent increased to $161 per acre in 2025, just a $1 per acre (0.6%) increase.

Irrigated cropland rents declined by 0.4% to $244 per acre, while non-irrigated rents rose 0.7% to $147 per acre.

Pastureland cash rents remained unchanged at $15.50 per acre.

The impact
The report confirms continued growth, although at a slower pace than previous years, in farmland values and cash rents. Average U.S. farm real estate rose by $180 per acre, with cropland and pastureland values also at record highs. Cash rents had minimal changes, reflecting a market beginning to cool.

“These gains come amid softening commodity prices and tight margins,” AFBF Economist Daniel Munch wrote in the report. “Much of the current support stems from ad-hoc federal disaster and economic aid, not stronger market fundamentals. Development pressure, investor demand and rural demographic trends are also driving localized land competition.”

Renters and beginning farmers remain exposed, facing high costs with limited equity.

“This data underscores a key tension: land values remain strong, but long-term farm profitability is increasingly reliant on policy, not price,” Munch wrote.