The 9 Factors That Actually Drive Farmland Prices in Pennsylvania

3/7/2026

The 9 Factors That Actually Drive Farmland Prices in Pennsylvania 

Why Some Farms Sell for Twice as Much as Others

Farmland values across Pennsylvania vary widely from one property to another. In some cases, two farms located only a few miles apart may sell for dramatically different prices per acre.

Many landowners assume farmland value is determined primarily by acreage or location, but in reality farmland pricing is influenced by a combination of agricultural productivity, land characteristics, regional market conditions, and development pressure. 

For farmers, investors, and landowners considering selling agricultural land in Pennsylvania, understanding the factors that influence farmland value is essential.

Below are the nine key factors that most strongly influence farmland prices across the Commonwealth.

1. Soil Productivity

Soil quality is widely considered the single most important factor affecting farmland value. Highly productive soils allow farmers to produce stronger crop yields with fewer inputs such as fertilizer, irrigation, and soil amendments.

Several indicators are commonly used to evaluate soil productivity, including:

• Prime Farmland designation
• Soil drainage characteristics
• NCCPI productivity ratings
• Historical crop yields

The NCCPI (National Commodity Crop Productivity Index) is a widely used rating system developed by the USDA that measures the relative productivity of soils for commodity crops.

Farms with a high percentage of prime agricultural soils consistently command higher prices because they support profitable crop production.

In many parts of Pennsylvania, a farm with exceptional soils may sell for two to three times the price of nearby land with lower soil productivity.

2. Topography and Slope

The steepness of the land plays a major role in determining farmland value. Modern agricultural equipment is designed to operate most efficiently on relatively flat terrain.

As slopes increase, farming becomes more difficult and less efficient. Land with slopes greater than 8–12 percent becomes progressively harder to farm. 

Steep slopes can create several problems:

• increased erosion risk
• reduced equipment efficiency
• higher operating costs
• lower crop yields

Because of these limitations, farms with flatter terrain are typically much more valuable than farms with steep hillsides.

This factor is especially important in Pennsylvania’s Appalachian and ridge-and-valley regions, where topography varies dramatically.

3. Field Size and Configuration

Large, contiguous fields are far more efficient for modern farming operations.

Farmers prefer fields that are:

• rectangular or square in shape
• unobstructed by tree lines
• easily accessible with large equipment

Modern farm machinery is designed for large, open fields where operators can minimize turning and maximize efficiency. Farms that are fragmented into many small fields often have lower value because they require more time, fuel, and labor to farm effectively.

Efficient field layout can significantly increase a property’s appeal to commercial farmers.

4. Drainage and Soil Moisture Conditions

Soil drainage conditions are another major factor affecting farmland productivity and value.

Poorly drained farmland may experience:

• standing water after rain
• delayed planting seasons
• root damage to crops
• reduced yields

Important drainage considerations include:

• poorly drained soils
• seasonal water accumulation
• lack of tile drainage systems

In contrast, well-drained farmland allows farmers to plant earlier in the season and maintain more consistent crop yields.

In some cases, installing subsurface tile drainage systems can significantly increase farmland productivity and overall land value. 

5. Parcel Size

Farm size can also influence farmland prices.

Larger farms often command higher per-acre values because they provide economies of scale for farm operators.

Large farms offer several advantages:

• more efficient use of equipment
• expanded crop production
• capacity opportunities for farm expansion
• long-term operational stability

Large tracts are especially attractive to neighboring farmers looking to expand their operations.

Smaller parcels may appeal more to lifestyle buyers or hobby farmers, which can shift pricing dynamics.

However, parcels that are too small to operate efficiently may sometimes sell for lower per-acre prices.

6. Location Within Strong Agricultural Regions

Farmland located in established agricultural regions often maintains higher values than land in areas with less active farming communities.

Some of Pennsylvania’s strongest agricultural regions include:

• Lancaster County
• York County
• Lebanon County
• Chester County
• Franklin County

These regions benefit from:

• highly productive soils
• strong agricultural infrastructure
• nearby processing facilities
• established farm markets

Because agriculture remains economically strong in these areas, demand for farmland often remains high.

7. Demand From Neighboring Farmers

One of the most powerful drivers of farmland prices is competition from neighboring farmers.

When a farm becomes available near several expanding agricultural operations, those farmers may compete aggressively to acquire the property. 

Farmers often purchase nearby land to:

• reduce equipment travel distance
• increase crop acreage
• improve operational efficiency
• secure land for the next generation

Because neighboring farmers can immediately integrate new land into their operations, they often place the highest value on nearby farmland.

8. Development Pressure

Some farmland has value beyond agriculture because of its development potential.

This occurs when farmland is located near:

• expanding suburban communities
• major highway corridors
• sewer and water infrastructure
• growing population centers

In these cases, farmland may have transitional value, meaning its future use could eventually shift from agricultural production to residential, commercial, or industrial development.

This factor can dramatically increase land prices in certain areas of Pennsylvania, particularly near growing metropolitan regions such as:

• Philadelphia suburbs
• Pittsburgh suburbs
• the Lehigh Valley
• Lancaster and York regions 

9. Conservation Easements

Pennsylvania has one of the largest farmland preservation programs in the United States. Many farms are protected by agricultural conservation easements, which permanently restrict development rights.

While conservation easements help preserve farmland for future generations, they can influence market value. Because development is prohibited, easement farms often sell for less than unrestricted farmland.

However, these farms can still command strong prices among farmers who want to ensure the land remains in agriculture permanently.

Why Some Farms Sell for Twice as Much as Others

When several favorable factors combine, farmland prices can increase dramatically.

For example, a farm with:

• prime agricultural soils
• flat terrain
• large contiguous fields
• strong local farmer demand

may command a very high price per acre.

In contrast, a farm with:

• steep slopes
• fragmented fields
• poor soil productivity

may sell for significantly less.

These differences explain why farmland values can vary widely even within the same township.

The Role of a Skilled Agricultural Land Advisor

Because farmland value depends on many interacting factors, pricing agricultural land requires careful analysis.

A skilled agricultural land advisor can help buyers and sellers evaluate key considerations such as:

• the true productivity of the land
• how the property compares to nearby farms
• whether development potential exists
• what buyer groups are most likely to compete for the property

By analyzing these factors carefully, farm owners can make more informed decisions and buyers can evaluate opportunities with greater confidence.