Farm Real Estate Values Fall

August 6, 2009

According to the most recent numbers, the value of farm real estate, along with private homes and commercial real estate has dropped dramatically. The national average is approximately $2,100 per acre. Farm real estate includes both land (by acreage) and buildings- this means barns, storage units- such as silos and the structures used to house and raise livestock.

A recent article in the Chicago Tribune looked at the farm real estate prices in a neighboring state- Wisconsin. It said that the value of land and buildings had dropped by 3 percent, but that it remains above the national average. Wisconsin, along with Michigan, is tied for the 18th highest position in state farm real estate prices.

The average property value in Wisconsin and Michigan were $3,750- much higher than that of neighboring state, Minnesota, with only a value of $2,900 per acre. Prices are expected to continue to drop, as the housing and commercial real estate markets drop.