Farmland Values Continue to Rise in North Dakota, Minnesota Despite Economic Headwinds

Agricultural land prices in North Dakota and Minnesota are continuing an upward trend, defying expectations given current challenges in the U.S. farm economy, according to recent data.

The U.S. Department of Agriculture reported North Dakota cropland is priced at $2,710 an acre, a 4.2% increase year-over-year, while Minnesota cropland values reached $7,000 per acre in August, up 7% from 2024. These rising land values impact the affordability of farming and potential generational transitions in agriculture. “If you could go back in time and say, ‘We were going to decrease corn prices by 50% and double interest rates,’ everyone would have expected a bubble to burst, and it just didn’t,” said Troy Swee, area sales manager for Farmers National Company.

North Dakota’s average cropland prices, as estimated by the North Dakota Department of Trust Lands Annual Land Survey, are even higher than USDA numbers, averaging $3,534 per acre this year – a 40% increase over the last four years. Minnesota pastureland is priced at $2,300, a 4% increase from last year. Demand for land remains strong, with approximately 75% of farmland being purchased by local farmers, according to Swee. For more information on agricultural land trends, visit the USDA’s National Agricultural Statistics Service.

Experts attribute the continued price increases to limited land availability and strong demand, even as farm income is projected to be at its lowest since 2020. Record profits in the livestock industry, particularly with feeder cattle reaching an all-time high, are also contributing to the trend. “Meat is back in vogue,” said Tim Petry, associate professor and livestock economist at North Dakota State University, noting increased demand for protein in diets. Officials caution that a potential slowdown in price increases is likely, dependent on the broader agricultural economy.