Oregon Farmland Has Dropped in Value for the First Time in 12 Years, Says the USDA

For the first time in 12 years, the U.S. Department of Agriculture (USDA) has reported a real decline in the value of Oregon farming real estate.

Using the Bureau of Economic Analysis’ Gross Domestic Product Implicit Price Deflator, the USDA says farmland values show a decrease of $15 (0,4%).

However, while the growth in value of all classes of land in Oregon appears to have weakened in 2024-25, farmland has generally kept pace with inflation, according to the USDAs June Area Survey on state-level data on farmland values.

The nominal per-acre value of farm real estate is $3,780. This is based on non-adjusted inflation values and represents a $60 (1.6%) increase in nominal terms of Oregon farmlands over the past year.

When compared to its most recent five-year average over 2020–24, inflation-adjusted farm real estate values remain up by $258 (7.3%).

The non-irrigated cropland values decreased to $3,000 per acre, a real change of -$71 (-2.3%).

At the other end of the scale, the value of irrigated cropland continued its upward trend over the last 12 months, increasing to $8,000 per acre, a $196 inflation-adjusted gain of 2.5%.

There is a High Inventory of Farmland For Sale in Central Oregon

According to an AgWest Farm Credit report, based on its own farmland sales data, there is a relatively high inventory of farmland available for sale in Central Oregon, which it believes could have impacted the recent run of price increases experienced across the state.

AgWest also cites the 2024 wildfires as a potential factor shaping farmland markets in the state.

This comment corroborates ongoing research at Oregon State University that shows how wildfires reduce the price of nearby agricultural lands, particularly grazing lands.

Agricultural Economist Says Decreased Prices Are a Minor Departure from Decades of Growth

Oregon State University agricultural economist, Dan Bigelow, says that although the USDA is reporting a slight decrease in the overall value of Oregon farm real estate, this is a minor departure from what has been 25-plus years of near-constant growth.

Bigelow, who analyzed the USDA June report, says investors tend to favor farmland as it generally keeps pace with inflation, making it an attractive and relatively safe asset. Furthermore, having access to affordable farmland is key for producers, as real estate is the most common source of collateral in farm-related loans.

Bigelow is predicting upward pressure on land prices because the Federal Reserve appears poised to lower its benchmark interest rate, potentially multiple times during 2026.