Recent sales and official reports underscore this surprising trend. The USDA Land Values Report indicates that Michigan farm real estate, which includes both land and buildings, saw a 7.8% increase to $6,800 per acre—the highest percentage increase in the nation. Ohio followed closely with a 6.7% jump to $9,350 per acre. Individual sales in top-tier areas were even more impressive, with a farm in Madison County, Ohio, fetching a staggering $19,200 an acre, highlighting the premium placed on highly productive and tillable land.

Farther east, in states like Pennsylvania, a different but equally robust trend is emerging. Dustin Prievo of Whitetail Properties notes that smaller farm parcels, specifically those between 10 and 30 acres, are in exceptionally high demand. These parcels are selling quickly and often for over their listing price, driven by both farmers and non-farmers who find these sizes more affordable. The value of land in prime locations like Lancaster County is so high, ranging from $18,000 to $35,000 an acre, that it is compelling some landowners to sell and relocate to more affordable areas.

The continued strength in land values is heavily influenced by investor interest. The article highlights that many investors are seeking to diversify their portfolios by owning land, which is seen as a more tangible and stable asset compared to the stock market. With an annual cash return of 2% to 3.5% and long-term appreciation, farmland has a track record of performing comparably to the Dow over a 50-year period, but with less volatility. This strategic insight is a crucial piece of data journalism for the entire agribusiness sector.