National Land Realty (NLR), the nation's fastest-growing land brokerage firm, has released its latest data on land sales across the United States for the first half of 2024. The report, which draws from NLR's network of over 400 agents and brokers in 48 states, provides an in-depth analysis of agricultural land sales and demonstrates stability in the national aggregate for average price per acre (PPA), while also highlighting significant trends in specific states such as Louisiana, Florida, and California.
The national data from NLR's report indicates that the average price per acre across the country has seen a modest increase of approximately 5%. This stability follows a period of substantial farmland appreciation in recent years, with 2023 experiencing record prices for farmland. Ronnie Richardson, CEO of NLR, attributes this stability to sustained high demand for irrigated and available farmland driven by consumer demand for produce, meat, dairy, and feed. He noted, "Land prices have remained high in spite of increased input costs and interest rates, indicating significant demand across the country for irrigated and available farmland." Richardson anticipates that these values will remain strong barring any major disruptions such as extensive drought, natural disasters, or events similar to the COVID-19 pandemic.
However, the report also identifies notable deviations in certain states. In Louisiana, the average price per acre decreased by $10,866. This decline is primarily due to some larger landowners beginning to divest their farmland holdings. Richardson commented, “Louisiana is largely farmland, where land values are influenced by the same forces as elsewhere: supply and demand. Even with a slight decrease in price per acre, purchasing land remains attractive as divestments create opportunities for buyers to capitalize on economies of scale.”
California experienced a significant 27% decline in its average price per acre, dropping by $12,226 over the past year. This decrease is attributed to high interest rates and low commodity prices for key crops like almonds and walnuts. Richardson emphasized that while the agricultural market remains generally unaffected by geopolitical issues, taxes and interest rates are significant influencers. He advised potential buyers to monitor the market closely, especially as some large institutional investors consider exiting the California farmland market.
In stark contrast, Florida saw a remarkable 118% increase in its average price per acre, surging by $24,000 from 2023 to 2024. This increase is driven by soaring demand for land in the state, a trend likely to continue as Florida remains a top destination for Americans relocating. Richardson highlighted the ongoing demand, stating, “It's the same issue here: supply and demand. Even though the price per acre is up, I would still recommend buying land in Florida as demand continues to rise. I would focus on transitional properties in particular as more people continue to move into the state.”
The implications of these findings are significant for potential buyers, investors, and stakeholders in the agricultural sector. The stable national average suggests resilience in the land market despite economic pressures, while the state-specific trends underscore the importance of localized market conditions. By understanding these dynamics, stakeholders can make more informed decisions regarding land investments.
The data in NLR's report is derived from a compilation of land sales data provided by its network of agents across the United States, comparing 2023 sales data to sales data from the first half of 2024. For the first half of 2024, the data is based on 6,963 land transactions.
