Texas landowners have a lot on their minds in 2025. Land prices remain relatively high compared to pre-pandemic levels. Operations are shifting, and the future feels less predictable than it did just a few years ago.
So what should you do next? Hold steady? Grow your operation? Wait and see?
At Plains Land Bank, we know land isn’t just another investment. It’s your family’s livelihood, future, and legacy. We’ve pulled together the latest data on land values and market trends across Texas so you can make confident decisions with a clear view of what’s ahead.
Even with fewer sales and tighter economic conditions, land prices across much of Texas have held steady. In some regions, however, values have continued to rise, particularly for rural acreage.
According to the Texas Real Estate Research Center at Texas A&M University, the median price per acre in Texas reached $4,702 by mid-2024, marking a 3% year-over-year increase despite a slowdown in total acreage sold.
So what’s impacting rural land prices in these areas? In many cases, it comes down to long-term demand, supply, and strong regional interest. As more people look beyond city centers—whether for ag operations, investment, or recreation—rural acres are proving their value.
In Plains Land Bank’s territory, specifically across the Texas Panhandle, irrigated land holds some of the highest value in the region. Producers are still paying a premium for water, and high-quality irrigated acres continue to see consistent demand. While other land classes in the region have largely stabilized, values for irrigated properties remain notably strong.
If land sales have slowed, why are prices still stable? The answer lies in the big-picture forces shaping Texas.
One of the most powerful drivers is population growth. According to a Texas Land Trends report:
Much of that growth is concentrated in and around the state’s largest cities. As cities expand outward, rural land near urban centers and transportation corridors becomes increasingly attractive for development, recreation, small-scale agriculture, and future investment. The result? More competition and higher values, especially near the urban-rural fringe.
Another major factor is land scarcity.
While Texas may cover a lot of ground, the amount of available agricultural land is shrinking. The Texas Land Trends report also states that:
Much of this land was converted to non-agricultural uses like development and infrastructure, primarily near the state’s largest metro areas. However, in the Texas Panhandle, outside of areas like Amarillo, agricultural land has remained relatively stable.
As the Texas Land Trends report points out, Texas has already lost nearly 3.7 million acres of working lands since 1997. That steady decline in some parts of the state, paired with increasing demand, helps explain why rural land continues to hold its value long-term. This is especially true in regions like the Panhandle
and South Plains, where open space remains productive and prices are still within reach.
Whether you’re running cattle, growing crops, or using your land for recreational use, today’s market conditions carry important implications for how you plan—and protect—your investment.
For one, rising land values can be a good sign if you already own property. Even though land sales have slowed in some areas, the equity in your land may still be growing. And while some lenders have tightened their criteria, Farm Credit institutions like Plains Land Bank remain committed to supporting ag producers. That means your land’s equity can still work for you, whether through refinancing, expansion, or reinvestment.
But the picture isn’t the same for everyone. That’s why it’s important to understand what is right for your land and your operation’s unique needs. Recent reports show that while some producers are expanding, others are facing industry consolidation.
This makes planning—and the right lending partner—more important than ever.
