Michigan Farmland Prices Increasing at Highest Rate in Country

By Anna Busse

Data from the U.S. Department of Agriculture has put Michigan’s farm real estate value at about $6,800 per acre in 2025, a 7.8% increase from 2024 and the highest percentage increase in the country.

Bill Knudson, an agricultural economist at Michigan State University's Department of Agricultural, Food and Resource Economics, said for the past 25 years farmland has been a good investment, and both the price of farmland and rental rates have gone up. He said the trend is nationwide.

“You're getting a good combination of increased value plus an increased income flow in the form of farm rents,” Knudson said. “As a result, not just farmers, but institutional investors as well, have shown a strong interest in farmland.”