Why U.S Farmers Own Farmland and What They Expect for Land Values

Farm operators own farmland for many reasons. Results from August 2026 Ag Economy Barometer highlight that farmland ownership is motivated by more than current financial returns. Family or sentimental reasons were the primary motivation for 45% of respondents, while another 32% identified long-term investment as their main reason for owning farmland. Only 22% selected current income.

These motivations are consistent with producers’ broader views of farmland as an asset. Approximately two-thirds of respondents indicated that farmland is a good investment, and producers were considerably more optimistic about farmland values over the next five years than over the next 12 months. Alternative investments and interest rates were identified as the two most influential factors affecting farmland values.

The analysis suggests that farmland continues to play a unique role for U.S. farm operators. It is not only a productive asset, but also a long-term investment and, for many producers, an asset closely tied to family and generational considerations.

EDITOR’S TAKE:

We often reference farmland as being a very important consideration when analyzing a farmer’s balance sheet. This article, however, goes beyond that top line analysis and provides additional insight into why farmers own land and how they view the decision-making process. It is not surprising that the primary reason or motivation for owning farmland is family or sentimental reasons. This reason can often be attributed to why they are so determined to purchase the neighbor’s farm or a piece that is not too far down the road. That said, they also view it as a great long-term investment.

The fact that farmers/ranchers own a good deal of land is what typically makes them a good credit risk. Also, with tools like CADFI, you can match their payment schedule to their income stream all while using farmland as collateral.