What Determines Price Per Acre for Farmland in Pennsylvania?

3/6/2026

What Determines Price Per Acre for Farmland in Pennsylvania? 

Understanding the Factors That Influence Agricultural Land Value

When Pennsylvania landowners begin thinking about selling farmland, one of the most common questions is:

“What is farmland selling for per acre in Pennsylvania?”

While this may seem like a straightforward question, the answer varies widely depending on several factors.

 Across the Commonwealth, farmland prices can vary dramatically based on location, soil productivity, parcel size, and development pressure. In some regions, farmland may sell primarily based on agricultural productivity, while in others development potential may significantly influence pricing.

Understanding the factors that determine price per acre can help landowners better evaluate the potential value of their agricultural property.

Soil Productivity and Agricultural Potential

One of the most important factors influencing farmland value is soil productivity.

In agricultural regions of Pennsylvania, soil quality directly affects the land’s ability to produce crops and support farming operations.

The United States Department of Agriculture (USDA) provides detailed soil surveys that classify farmland based on its agricultural potential.

High-quality soils may support:

• grain production
• dairy feed
• crops
• vegetable farming
• specialty crop production

Highly productive soils often command higher prices because they support stronger crop yields and more profitable farming operations. Conversely, farmland with poor soil drainage, erosion concerns, or limited crop potential may sell for lower prices.

In Pennsylvania, areas with exceptionally productive soils—such as Lancaster County—often command some of the highest farmland prices in the state.

Parcel Size and Farm Efficiency

The size of a farmland parcel can also influence price per acre. Large contiguous tracts of farmland are often more valuable to farmers because they allow for more efficient operations.

Benefits of larger parcels may include:

• easier equipment access
• more efficient crop rotation
• reduced transportation between fields
• improved operational efficiency

For commercial farming operations, large tracts of land can be particularly attractive. Smaller parcels, on the other hand, may appeal to different types of buyers such as hobby farmers, recreational buyers, or rural homeowners.

Because smaller parcels sometimes appeal to a wider group of buyers, they may occasionally sell for a higher price per acre even though the total property value is lower.

Irrigation Potential and Water Availability

Water access can play a significant role in farmland value.

While many farms in Pennsylvania rely on natural rainfall, irrigation infrastructure can provide advantages for certain types of agricultural operations.

Land with reliable water sources may support:

• specialty crops
• vegetable farming
• orchards
• intensive agricultural production

Irrigation systems, ponds, wells, or access to surface water can increase the agricultural productivity of farmland. 

In some regions, irrigation capability can significantly increase the value of agricultural land.

Development Pressure

In many parts of Pennsylvania, farmland value is influenced not only by agricultural productivity but also by development pressure.

As cities and suburbs expand, farmland located near growing communities may eventually become suitable for residential or commercial development.

Indicators of development pressure may include:

• nearby housing developments
• expanding sewer and water infrastructure
• new commercial construction
• proximity to major highways
• municipal plans encouraging growth

When farmland is located in the path of growth, developers may be willing to pay significantly more than traditional agricultural buyers.

In these cases, farmland may transition from an agricultural asset to a development asset. 

Proximity to Cities and Population Centers

Location remains one of the most important factors influencing farmland value.

Agricultural land located near major population centers often commands higher prices due to several factors. 

First, proximity to urban areas can create opportunities for:

• direct farm markets
• agritourism
• specialty crop production
• local food supply chains

Second, farmland near cities may eventually attract interest from residential or commercial developers.

In Pennsylvania, farmland located near metropolitan areas such as:

• Philadelphia
• Pittsburgh
• Allentown and Bethlehem
• Harrisburg
• Lancaster and York

...may experience higher demand due to both agricultural and development opportunities.

Conversely, farmland located in more remote rural regions may sell primarily based on its agricultural productivity.

Infrastructure and Road Access

Access to transportation infrastructure can also influence farmland value.

Properties with good road access may be easier for farm equipment to reach and may reduce transportation costs.

Farmland located near major highways or transportation routes may also attract interest from agricultural businesses and developers. 

Access considerations may include:

• road frontage
• access
• easements
• proximity to highways
• distance to agricultural processing facilities

These factors can influence both farming efficiency and long-term development potential.

Regional Differences in Pennsylvania

Farmland Prices

Farmland values vary significantly across the state due to differences in soil quality, agricultural productivity, and development pressure.

Southeastern Pennsylvania

Counties such as Lancaster, Chester, and Montgomery often have some of the highest farmland prices due to fertile soils and development demand.

South Central Pennsylvania

Adams, Franklin, and York counties contain productive agricultural regions known for orchards and crop farming.

Central Pennsylvania

Large crop farms dominate in counties such as Centre, Juniata, Mifflin, and Snyder.

Western Pennsylvania

Agriculture often coexists with rural residential development and recreational land uses.

Northern Pennsylvania

Farmland prices tend to be lower in more rural counties where population density and development pressure are limited.

These regional differences highlight why farmland values must be evaluated locally.

Agricultural Improvements and Farm Buildings

Farm infrastructure can also affect price per acre.

Common agricultural improvements include:

• barns
• grain silos
• livestock facilities
• irrigation systems
• fencing farmhouses

These improvements may increase value if they support productive agricultural operations. However, older or outdated structures may have limited value depending on their condition and usefulness.

Clean and Green (Act 319) Tax Considerations

Many agricultural properties in Pennsylvania participate in the Clean and Green program, which provides property tax reductions for land used for agricultural production.

This program can make farmland more affordable to own and operate. However, if farmland enrolled in Clean and Green is converted to non-agricultural uses, rollback taxes may apply.

These tax considerations can influence how farmland is valued and marketed. 

Common Misconceptions About Farmland Pricing

Several misconceptions often arise when landowners attempt to estimate farmland value.

“All farmland in the area sells for the same price per acre.”

In reality, soil productivity, location, and development potential create wide variations in price.

“Tax assessments reflect farmland value.”

Property tax assessments rarely represent true market value.

“Farmland value depends only on agriculture.”

Development potential and proximity to cities can significantly influence land value.

Frequently Asked Questions

What is the average price per acre for farmland in Pennsylvania?

Prices vary widely depending on location, soil productivity, and development potential.

Does soil quality affect farmland value?

Yes. Productive soils that support high crop yields often command higher prices.

Do developers buy farmland?

Yes. Farmland located near growing communities may attract interest from developers.

Does parcel size affect farmland value?

Large tracts may be attractive to commercial farmers, while smaller parcels may appeal to hobby farmers or rural homeowners.

Final Advisory Perspective

Farmland value in Pennsylvania is influenced by a complex combination of agricultural productivity, location, infrastructure, and development potential.

While many landowners focus primarily on price per acre, the true value of agricultural land often depends on how the property can be used now and in the future. 

Understanding these factors can help landowners better evaluate their property and make informed decisions when considering a sale.