USDA estimates the value of farm real estate assets (land and its attachments) will account for 82.7% of total 2019 farm sector assets. This represents farmers’ most significant collateral when seeking loans for their operations and capital expenditures, such as ag equipment. In total, the value of farm real estate assets is currently estimated to be nearly $2.6 trillion.
While farmland values have leveled off since 2014 after a long period of appreciation following the farm crisis of the 1980s, many regions continue to experience modest year-over-year increases. Considering ag’s ongoing sluggishness, farm real estate values have more than held their own since the ag downturn starting in 2014. In fact, the Economic Research Service (ERS) of USDA anticipates farm real estate assets will increase 2.1% in 2019 in nominal terms. When adjusted for inflation, the value of farm real estate assets is expected to be relatively unchanged, increasing just 0.2%.