From a peak of $947/ac in 1980, it took twenty-seven years to surpass that value in real terms with a 2007 value of $993/ac. In real (inflation-adjusted) terms, the recovery from the farm crisis of the 80s was a long one. The inflation-adjusted line (which is usually not reported) reflects the nominal value percentage change minus the inflation rate as measured by the Consumer Price Index. The nominal values are the actual, reported dollar values per acre for each year. The line graph with national values since 1970 is the format that is often presented in various media outlets.
USDA, National Agricultural Statistics Service Source: Land Values 2021 Summary (Augus 2021) The first figure is the 2021 summary by state from the report.įigure 1: 2021 Farm Real Estate Value by State Land value trends are best presented in graphical formats. The 7.0% increase in 2021 reflects the improved net farm income situation and reaffirms the notion that income potential gets capitalized into land values. That contrasts with the farm crisis of the 80s when farmland values dropped four out of five years between 1983 to 1987. However, land values declined only one year (2016) during that period of depressed commodity prices and falling net farm income. The previous five-year average annual increase was only 1.1%, a rate that has failed to exceed the period’s relatively modest inflation rate. Nationally, farm real estate was valued at $3,380 up 7.0% from 2020 and the largest percentage increase since 2014.
These values would indicate a total value of Kentucky farm real estate of $50.6 billion.
This was 2.0% higher than 2020 and the first-time average values have reached $4,000. Author(s): Steve Isaacs Published: August 16th, 2021 Shareable PDFĪverage Kentucky farm real estate values were $4,000/acre as reported in the annual Land Values Summary released by USDA on August 6.
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