Acreage prices stable across the US in first half of 2023

The National Land Realty's report for the first half of 2024 indicates that the average price per acre across the United States has remained relatively stable, with a modest national increase of about 5%. This stability is notable given the rising input costs and interest rates affecting the agricultural sector. The demand for irrigated and available farmland continues to be strong, suggesting that prices are likely to hold steady in the near future unless impacted by significant adverse events such as droughts or natural disasters. In Louisiana, the average price per acre has decreased by $10,866, primarily due to larger landowners divesting some of their farmland holdings. This decline reflects the broader supply and demand dynamics that influence land values in the state, which is predominantly agricultural. Similarly, California has seen a substantial drop in average prices, with a decrease of $12,226, or 27%. The high overall land prices in California make the market particularly sensitive to factors like tax and interest rate hikes. Conversely, Florida has experienced a remarkable surge in land prices, with an increase of $24,000 per acre, representing a 118% rise. This surge is driven by a significant demand for land as Florida remains a top destination for relocators. The ongoing demand suggests that this trend is likely to continue, making Florida an attractive market for land purchases. Overall, the report highlights the contrasting trends in acreage prices across different states, emphasizing the importance of local market conditions and demand factors in shaping land values.