Land values continue to hold across the United States, according to the latest annual USDA Land Values 2026 Summary. While appreciation has slowed from some of the rapid increases seen in recent years, the latest data shows farmland remains a stable and valuable asset for landowners across the country.

The USDA reports that the average value of U.S. farm real estate, including land and buildings, reached $4,500 per acre in 2026, an increase of $150 per acre, or 3.4%, from 2025. Average cropland values rose 3.3% to $6,020 per acre, while pasture values increased 4.2% to $2,000 per acre.

For landowners considering selling, buying, refinancing, or simply evaluating their assets, these numbers offer important insight into where the land market stands today and where we may be headed in the next 12 months! 

Land Values Continue to Reach New Highs

The latest USDA figures show that land values have continued their long-term upward trend. The average value of U.S. farm real estate has increased from $2,520 per acre in 2012 to $4,500 per acre in 2026. Cropland has risen from $3,350 per acre to $6,020 over the same period, while pasture increased from $1,110 to $2,000 per acre.

That doesn’t mean every property has increased by the same amount. Land values can vary dramatically based on location, land quality, water availability, access, improvements, recreational features, development potential, and local demand. For example, 2026 average cropland values were particularly high in several Midwestern and Northeastern states, while values were considerably lower in parts of the Southern Plains and Mountain regions.

Similarly, pastureland in 2026 has seen record prices in the Midwest as low herd numbers drive up the cost of beef and land for grazing. While these national trends are important to keep an eye on, local market conditions often ultimately determine the value of any specific property.

According to AR Land Broker Jeramy Stephens during a recent interview on RFD-TV, one of the largest factors influencing US farmland values in 2026 is low inventory. With fewer available properties than there are willing buyers in the market, ag land values especially have remained steady despite supply chain disruptions and increased input costs. 

Irrigated Land Can Command a Significant Premium

Water is another of the most important factors influencing agricultural land values, particularly in areas where irrigation is critical to production. The USDA’s 2026 report separately tracks irrigated and non-irrigated cropland in states with significant irrigated acreage. The data shows substantial value differences between the two categories in many states.

For example, in Nebraska, 2026 irrigated cropland averaged approximately $9,200 per acre, compared with about $5,650 per acre for non-irrigated cropland. In Colorado, irrigated cropland averaged approximately $7,050 per acre, compared with about $2,040 per acre for non-irrigated cropland.

For landowners, this reinforces the importance of understanding the water resources associated with a property. Irrigation rights, wells, water availability, and existing infrastructure can all play an important role in determining a property’s marketability and value.

What Do Higher Land Values Mean for Landowners?

For many landowners, rising values represent an opportunity, but knowing when and how to act requires more than looking at a national average. Higher land values may increase the amount of equity a landowner has built in their property. They can also create opportunities for owners who have been considering selling, transitioning land to the next generation, consolidating acreage, or repositioning their investments.

At the same time, higher values can make purchasing additional acreage more challenging for buyers. Interest rates, farm income, commodity prices, local supply and demand, and financing conditions can all influence what buyers are willing and able to pay. For landowners uncertain about what to do with their land, your local Land Professional is an excellent resource for evaluating your current local market.

What Should Landowners Do Now?

The 2026 USDA report provides a clear message: land values remain strong, but the market is highly dependent on location and property characteristics.

If you’ve owned land for several years, it may be worth taking a fresh look at what your property could command in today’s market. Factors such as productive cropland, pasture, timber, water resources, hunting opportunities, improvements, road access, and proximity to growing communities can all affect a property’s value.

For landowners considering a sale, understanding current local sales and buyer demand is especially important. A knowledgeable Land Professional can help you evaluate how your property compares with recent sales and determine an appropriate strategy for bringing it to market.