When it comes to real estate of any kind, the one saying that always rings true is location, location, location.
Aside from the location, the price tag and an understanding of farmland values can also be an essential tool when deciding whether to buy, sell or lease / rent farmland.
Are values going up? Are they dropping? Where is farmland value worth the most?
In the United States between 2013 and 2014, the average price of farm lands and buildings per acre was $2,950, an increase of 8.1% since 2013.
The largest increase in farmland value was 16.3% in the Northern Plains region (Kansas, Nebraska, North Dakota and South Dakota). The Southeast region (Alabama, Florida, Georgia and South Carolina) only had a 1.1% increase.
The Corn Belt (Illinois, Indiana, Iowa, Missouri and Ohio) had the highest average prices at $6,370 per acre and the Mountain region (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming) had the lowest average at $1,070 per acre.
Here's an in-depth look at how farmland values have changed between 2013 and 2014 in the United States.
Values
| State |
2013 value per acre ($) |
2014 value per acre ($) |
| |
Northeast Region
|
| Connecticut |
11,100 |
11,200 |
| Delaware |
8,170 |
8,180 |
| Maine |
2,100 |
2,080 |
| Maryland |
6,930 |
6,900 |
| Massachusetts |
10,400 |
10,400 |
| New Hampshire |
4,310 |
4,280 |
| New Jersey |
12,800 |
12,800 |
| New York |
2,600 |
2,700 |
| Pennsylvania |
5,430 |
5,600 |
| Rhode Island |
13,800 |
13,700 |
| Vermont |
3,200 |
3,260 |
| |
Lake Region
|
| Michigan |
4,300 |
4,700 |
| Minnesota |
4,300 |
4,750 |
| Wisconsin |
4,100 |
4,400 |
| |
Corn Belt
|
| Illinois |
7,100 |
7,520 |
| Indiana |
6,400 |
6,950 |
| Iowa |
7,700 |
8,500 |
| Missouri |
2,850 |
3,100 |
| Ohio |
5,100 |
5,500 |
| |
Northern Plains
|
| Kansas |
1,750 |
2,050 |
| Nebraska |
2,800 |
3,120 |
| North Dakota |
1,550 |
1,820 |
| South Dakota |
1,690 |
2,070 |
| |
Appalachian
|
| Kentucky |
3,020 |
3,150 |
| North Carolina |
4,340 |
4,510 |
| Tennessee |
3,570 |
3,600 |
| Virginia |
4,310 |
4,320 |
| West Virginia |
2,550 |
2,560 |
| |
Southeast
|
| Alabama |
2,500 |
2,600 |
| Florida |
5,200 |
5,250 |
| Georgia |
3,300 |
3,300 |
| South Carolina |
2,980 |
3,010 |
| |
Delta
|
| Arkansas |
2,700 |
2,850 |
| Louisiana |
2,550 |
2,670 |
| Mississippi |
2,270 |
2,340 |
| |
Southern Plains
|
| Oklahoma |
1,450 |
1,580 |
| Texas |
1,680 |
1,850 |
| |
Mountain
|
| Arizona |
3,500 |
3,740 |
| Colorado |
1,280 |
1,350 |
| Idaho |
2,220 |
2,360 |
| Montana |
790 |
860 |
| Nevada |
1,040 |
1,080 |
| New Mexico |
500 |
540 |
| Utah |
1,900 |
2,030 |
| Wyoming |
600 |
630 |
| |
Pacific
|
| California |
6,900 |
7,300 |
| Oregon |
1,970 |
2,050 |
| Washington |
2,300 |
2,500 |
In Canada, it appears that farmland values are also on the rise.
| Province |
Region |
2013 value per acre ($) |
2014 value per acre ($) |
| |
British Columbia
|
Chilliwack-Fraser Valley |
$40,000 - $60,000 |
$41,000 - $63,000 |
| |
Peace River North |
$1,300 - $1,350 |
$750 - $1,550 |
Alberta
|
Central Alberta |
$3,400 - $6,500 |
$4,500 - $7,500 |
| |
Southern Alberta |
$800 - $8,500 |
$1,000 - $10,000 |
Saskatchewan
|
Northwest/Central West |
$1,500 - $2,000 |
$1,800 - $2,200 |
| |
East Central |
$850 - $2,500 |
$950 - $2,550 |
Manitoba
|
Southwest |
$1,350 - $1,600 |
$1,500 - $2,000 |
Ontario
|
Leamington |
$11,000 + |
$7,000 - $11,000 |
| |
Lower Essex |
$6,500 - $7,500 |
$6,500 � $8,500 |
| |
Chatham-Kent |
$5,000 - $16,000 |
$7,000 - $22,000 |
| |
Middlesex East |
$12,000 |
$12,000 |
| |
Middlesex West |
$12,000 |
$8,500 |
| |
Elgin County East |
$10,000 |
$10,000 |
| |
Elgin County West |
$8,000 |
$8,000 |
| |
Lambton North |
$11,000 |
$10,000 |
| |
Lambton South |
$7,500 |
$7,000 |
| |
Woodstock-Stratford |
$15,000 - $18,000 |
$14,000 - $20,000 |
| |
Kitchener- Waterloo |
$15,000 - $18,000 |
$14,000 - $18,000 |
| |
Bruce County |
$5,000 - $9,000 |
$6,500 - $10,000 |
| |
Grey County |
$3,500 - $6,500 |
$3,500 - $8,500 |
| |
Barrie/Tottenham/Innisfil |
$11,000 |
$10,000 - $16,000 |
| |
Bradford |
$25,000 |
$25,000 |
| |
Quinte |
N/A |
$1,500 - $7,500 |
| |
Stormont, Dundas and Glengarry |
|
$7,000 - $17,000 |
| |
Renfrew/Cobden |
$3,000 - $5,000 |
$4,000 - $4,500 |
| |
Ottawa/West Carleton |
$4,000 - $5,000 |
$8,000 - $10,000 |
| |
North Gower/Winchester/St. Isidore/Casselman/Maxville |
$8,000 - $12,000 |
$10,000 - $12,000 |
Nova Scotia
|
Annapolis Valley |
$3,800 - $8,000 |
$5,000 - $10,000 |
As farmland values in both the United and States and Canada appear to be rising, farmers could find themselves with tough decisions on whether to buy, sell or lease their land.