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If you are looking for a hot spot in real estate across the country get out of the suburbs and cities. The combination of higher commodity pricing and pressure from encroaching development, farm real estate values are going through the roof. The average price per acre of farm land is $2,160, up 14 percent from last year. Cropland has increased by 13 percent to $2,700 per acre and pasture land has gone up 16 percent to $1,160.

We hear about the problems that face our specific niche’s in the market or region and forget that real estate is local. While Florida and Southern California are suffering, great parts of the country are seeing property values take off.

The increase in farm real estate values continues to be driven by a combination of many factors, which include strong commodity prices and farm programs, outside investments, favorable interest rates and tax incentives, and continued commercial and residential development. Livestock prices and recreational use remain the predominant influences that increase pasture land values.

Regional increases in the average value of farm real estate ranged from 9 percent in the Southeast region to 18 percent in the Mountain region. The highest farm real estate values remained in the Northeast region, where development pressure continued to push the average value to $5,000 per acre. The Northern Plains region had the lowest farm real estate value, at $961 per acre, up 14 percent from the previous year. via Wisconsin Ag Connection

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