2024 Oklahoma Farmland Value Update

Oklahoma’s agricultural sector is heavily dependent on the cattle and wheat industries, which together contribute nearly 80% of the state’s farm revenues. However, with commodity prices for both sectors remaining low, many farmers are finding it increasingly difficult to stay profitable. 

Suppressed prices in these critical markets translate to diminished returns for the majority of Oklahoma’s producers. Yet, in the face of these difficulties, Oklahoma farmland values continue to rise, underscoring the enduring appeal of land as a stable investment even in volatile times.

In the third quarter of 2024, the average price per acre of Oklahoma farmland reached $2,637, a significant jump from $2,196 per acre in Quarter 4 of 2023, according to AcreValue.com. This upward trend is particularly striking given the financial strain many producers are experiencing.

Producers Facing Pressures, Yet Oklahoma Farmland Values Rise

Farmers across Oklahoma are dealing with dual challenges: low commodity prices and soaring input costs, including expenses for fuel, fertilizer, and machinery. These pressures are making it difficult for many producers to manage their credit lines, with increasingly tight margins and high interest rates adding to the financial stress. Despite these circumstances, the value of farmland continues to appreciate, a testament to the strength of land as a long-term asset.

As a land agent specializing in rural property in Oklahoma, the majority of my clients are farmers and ranchers looking to expand their current operations, viewing land acquisition as essential for growing their businesses and securing future stability. The limited availability of quality farmland in key areas further drives up prices, as both traditional agricultural buyers and investors seeking diversification see farmland as a key asset in their wealth-building strategies.

Farmland’s Broad Appeal Driving Demand

One of the primary reasons farmland values in Oklahoma remain strong is the nature of land as a tangible, income-generating asset. During uncertain times, investors increasingly turn to land for its intrinsic value, which extends beyond agricultural use. 

Even for producers facing cash flow challenges, land offers potential through alternative uses such as recreational properties, hunting leases, or energy projects. This wide-ranging appeal has kept demand high and continues to drive up land prices.

Outlook: Stability in a Challenging Economy

While higher interest rates and fluctuating commodity prices have historically limited land value growth, Oklahoma’s farmland market has defied that trend. The financial difficulties faced by producers are undeniable, but the sustained rise in farmland values provides landowners with an opportunity to leverage their assets, even in tough times.

For those considering expanding their agricultural operations or diversifying into land investments, Oklahoma’s farmland market offers continued stability and strong growth potential. If you’d like to explore opportunities in Oklahoma farmland, contact me at DillonS@NationalLand.com, or reach out to your local land professional. 

This article was originally written for the National Land Blog by Dillon Smith.