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Farmland Value Data: Implications of Survey Accuracy and Reliability

C. Zakrewicz, Wade Brorsen and, Brian Briggeman (July, 2012)

Summary

Farmland values reflect the financial health of U.S. agriculture. As a result, many lenders, producers, policymakers and media members examine publicly available farmland value data to glean insights into land value trends. Today’s surging land values has elevated interest and even raised some concerns and questions of a potential land price bubble. In fact, a quick Internet search shows numerous reports that cite land value data from sources such as the U.S. Department of Agriculture (USDA), Federal Reserve Banks, and land-grant universities. The accuracy and reliability of these reports depends heavily on the data being cited because these data are often based on surveys and not based on actual land sales.