The average price of agricultural land sold in Wisconsin between January 1 and December 31, 2023, was $5,890 per acre (see Figure 1). This is a 6% increase from 2022. While the price of agricultural land is still increasing, the rate at which it is increasing seems to be slowing. The most drastic increase was from 2020–2021, with a 14% increase. The increase in 2022 was only 11%. While the price increase seems to be slowing, the number of acres sold is also continuing a downward trend. In 2022, we saw 26% fewer sales compared to 2021. In 2023, there were 44% fewer sales than in 2022.
There are marked differences in sale prices across the state, with some regions faring better than others. Despite the difficult economic conditions and substantial losses in the number of dairy farms over the last few years, the land market has been supported by the ability of landowners to hold onto their property and limit the supply of land on the market. Most landowners, even those forced to exit the dairy industry, were not forced to sell their land. Most could continue cropping or renting the land. Thus limiting the supply of land on the market which helped support market values. In some areas, other factors, such as urban sprawl, have helped to maintain or even bring up land values.
Between 2012 and 2020 the average annual growth in Wisconsin agricultural land value was 3%. In comparison, between 2020 and 2023, the average annual growth in value was 10%, which is a 3% decrease from the 2020–2022 average. It is unknown how long land prices will continue to increase at this heightened rate. However, there does appear to be a slowing in the price increase.
Farmland is the most valuable asset on most farmer’s balance sheets. However, estimating land values is always difficult. Each individual parcel of land is unique. While many thousands of homes are sold yearly, only a small fraction of the state’s agricultural land changes hands on the open market in any given year.
Surveys of farmers, bankers, real estate professionals, and appraisers are sometimes used to estimate changes in land values. While easy to conduct, these opinion surveys are subjective and can be hard to interpret. News of high-priced sales travels quickly – but these sales are often the exception and do not reflect the market.
Methodology This statewide report is based on bare land sales between non-related parties in Wisconsin townships. All parcels were between 35 acres and 2,000 acres, and their predominant use was agriculture at the time of the sale. Properties with waterfrontage or managed forest acreage were filtered out. Parcels sold with retained property rights or with miscellaneous use notes referring to mining were also excluded.
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Categories: Wisconsin, Crops