2. ZERO HUNGER

Agricultural land values keep rising

Agricultural land values keep rising
Written by ZJbTFBGJ2T

Agricultural land values keep rising  Hoard’s Dairyman

Agricultural land values keep rising

The Need for More and Higher Value Crops Drives Record High Agricultural Land Values

The need for more and higher value crops, as well as developmental pressure, has pushed agricultural land values to record high levels. That’s true for farm real estate, cropland, and pastureland.

National Agricultural Statistics Service’s (NASS) Land Values 2023 Summary

The National Agricultural Statistics Service’s (NASS) Land Values 2023 Summary released in August reported that average farm real estate value in the U.S., which covers all land and buildings on a farm, climbed $280 to reach $4,080 per acre. That was a 7.4% jump over a 2022 value that was $420 higher than 2021. A decade ago in 2013, the average farm real estate value was $2,730 per acre.

Agricultural Land Values by State

The most expensive agricultural land is found in states with little land remaining for development. Rhode Island tops the group at $18,300 per acre and is followed by New Jersey, Massachusetts, and Connecticut.

  • After those four states, agricultural land is most valuable ($12,400 per acre) in California, which produces a large volume and variety of high-value and specialty crops.
  • Iowa, Illinois, and Indiana are the heartland states that follow by clocking in at more than $9,000 per acre.
  • Back on the East Coast, so do Delaware and Maryland.

The cheapest agricultural land can be found in New Mexico ($610 per acre), Wyoming ($880), Nevada ($1,060), and Montana ($1,070).

Significant Increases in Agricultural Land Values

Compared to last year, Kansas saw the most significant jump in agricultural land value, rising 16% to reach $3,060 per acre. New Jersey, Indiana, Nebraska, North Dakota, South Dakota, Colorado, and Georgia were the other states that realized a double-digit percentage gain in value.

Cropland Values

When drilling down specifically to cropland, acreage values rose 8.1% in 2023 to reach $5,460 and followed a similar trend as real estate when looking at state values. Ten years ago, the average U.S. cropland value was $3,810 per acre.

Pastureland Values

Pastureland is also more expensive. After several years of stable prices, 2021 and 2022 saw significant gains that are now furthered by a 6.7% climb in 2023 that pushes pastureland to $1,760 per acre. In contrast to the real estate and cropland trends, many of the states with the highest pastureland values are on the East Coast.

Impact on Farmers

Reflecting these upward trajectories, NASS data shows that farmers who rent are paying their landlords more for agricultural land use. Average cash rent for cropland rose 4.7% to $155 per acre in 2023 ($237 for irrigated land and $142 for non-irrigated land), and pastureland cash rent climbed 7.7% to $15 per acre.

For farmers who own their land, this steady rise in value is good news to build equity. But for young and beginning farmers, it is another challenge. Land access is already often cited as the top barrier to entry for new farmers, and rising prices due to demand and development exacerbate that problem.

To comment, email your remarks to intel@hoards.com.

(c) Hoard’s Dairyman Intel 2023

September 11, 2023

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

  • SDG 2: Zero Hunger – The article discusses the need for more and higher value crops, which relates to the goal of achieving food security and promoting sustainable agriculture.
  • SDG 11: Sustainable Cities and Communities – The article mentions developmental pressure and rising land values, which are connected to the goal of making cities and human settlements inclusive, safe, resilient, and sustainable.
  • SDG 15: Life on Land – The article focuses on agricultural land values and their impact on farmers, which aligns with the goal of protecting, restoring, and promoting sustainable use of terrestrial ecosystems.

2. What specific targets under those SDGs can be identified based on the article’s content?

  • SDG 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, particularly women, indigenous peoples, family farmers, pastoralists, and fishers – The article highlights the need for higher value crops, which can contribute to increasing agricultural productivity and incomes.
  • SDG 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums – The article mentions developmental pressure and rising land values, which can impact access to affordable housing and basic services.
  • SDG 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services – The article discusses the impact of rising land values on farmers, which can affect the sustainable use of terrestrial ecosystems.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  • Average farm real estate value per acre – This indicator can be used to measure progress towards SDG 2.3 by assessing the increase in agricultural productivity and incomes.
  • Average cash rent for cropland and pastureland – This indicator can be used to measure progress towards SDG 11.1 by evaluating the affordability and accessibility of land for farmers.
  • Percentage change in agricultural land value – This indicator can be used to measure progress towards SDG 15.1 by monitoring the impact of land values on the conservation and sustainable use of terrestrial ecosystems.

SDGs, Targets, and Indicators Table

SDGs Targets Indicators
SDG 2: Zero Hunger 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, particularly women, indigenous peoples, family farmers, pastoralists, and fishers Average farm real estate value per acre
SDG 11: Sustainable Cities and Communities 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums Average cash rent for cropland and pastureland
SDG 15: Life on Land 15.1: By 2020, ensure the conservation, restoration, and sustainable use of terrestrial and inland freshwater ecosystems and their services Percentage change in agricultural land value

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: hoards.com

 

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