Growth in cropland value slowed as interest rates increased

Federal Reserve Bank of Kansas City map, based on bank surveys

"Farmland values increased sharply in 2022, but growth slowed during recent quarters in some regions alongside higher interest rates," the Federal Reserve Bank of Kansas City said in a report March 9. "The value of nonirrigated cropland increased by an average of 15% from the previous year across all regions, following growth of more than 20% in early 2022."

The figures are based on surveys by the Federal Reserve banks that cover most of the nation's agricultural production. “Benchmark interest rates surpassed returns to farmland owners in recent months, which could put some downward pressure on growth in farmland values going forward," the report said.