Brazil's farmland-cost advantage over the United States has narrowed substantially, according to a new comparison by Purdue University's Center for Commercial Agriculture, American Ag Network reports from the NAFB News Service.

The researchers compared land values in Iowa and Mato Grosso, two major soybean and corn regions, from 2002 to 2025. Iowa farmland rose from $2,083 an acre in 2002 to $11,549 in 2025. Mato Grosso values started far lower but climbed to $11,145 an acre in 2022 before falling to $9,066 in 2025.

Over the whole period, values rose at a compound annual rate of 7.7 percent in Iowa and 8.7 percent in Mato Grosso. By 2025, Iowa farmland was 27 percent more expensive.

Strong farm profits and commodity prices drove land values up in both countries, the researchers say, while lower crop prices, rising input costs and tighter credit have recently squeezed Brazilian producers. High land values and interest rates in Brazil have lengthened the time it takes farmers to pay back a land purchase.

Photo: James Martins / Wikimedia Commons (CC BY 3.0)

Source: American Ag Network