A new federal report shows Montana farmland continues to gain value, although the pace of growth has slowed from the rapid increases seen in recent years.
According to the latest USDA National Agricultural Statistics Service Land Values report, the average value of Montana farm real estate—including land and buildings—increased 2.5 percent over the past year to $1,230 per acre. Cropland values climbed 3.1 percent to $1,320 per acre, while pastureland rose 3 percent to $920 per acre. Irrigated cropland posted the largest increase, rising 5.6 percent to $4,350 per acre.
Despite higher interest rates and softer commodity prices, Montana land has remained a strong investment. Over the past five years, farm real estate values in the state have increased about 34 percent, with irrigated farmland up 45 percent, dryland cropland up 27 percent, and pastureland gaining 35 percent.
For producers in Valley County, where agriculture remains the backbone of the local economy, the statewide trend reflects continued demand for productive cropland and grazing land. While the USDA does not publish county-by-county land values, real estate professionals say high-quality farmland and ranchland in northeast Montana continue to command strong prices, particularly when good water resources and productive soils are included.
Analysts say Montana's land market has shifted from the rapid appreciation seen during the pandemic years to a more stable market, but values remain near record highs.
