First drop in farm land values since 1987

Farm real estate values, a measure of the value of land and buildings on farms, averaged $2,100 on January 1, 2009, down 3.2 percent from 2008. The drop was the first decline in farm real estate values since 1987.

The average value of cropland itself (no buildings) dropped by 3.9 percent to an average of $2,650 per acre, down from $2,760. Largest declines in cropland values occurred in the Southeast (-9.1 percent) and the Pacific region (-7.2). The Northern Plains (1.6) and Delta regions (0.6) actually went up in value. Cropland values dropped between 0.7 and 4.5 percent in the other regions: Northeast, Lake states, Corn Belt, Appalachian, Southern Plains, and Mountain.

Cropland values and percent changes from 2008 in the more populous dairy states are Wisconsin ($3,650, +1.4), New York ($2,200, +2.3), Pennsylvania ($5,700, -5.0), Minnesota ($2,610, -3.3), Michigan ($3,370, -3.2), Ohio ($3,900, -5.8), Iowa, $4,050, -5.6), and Missouri ($2,360, -5.6).

Less commercial and residential development in many areas, lower crop and livestock incomes, and weaker demand for recreational land all have contributed to the drop in farmland and cropland values.