Farmland is more valuable than ever.
In 2025, US agricultural real estate averaged $4,350 per acre, cropland $5,830, and pastureland $1,920. As prices rise, farmers looking to transfer land face an important question: how do you preserve and enhance an asset this valuable for future generations?
At the heart of that discussion lies soil health.
The Market Today
Farmland values have climbed for five consecutive years. Traditional appraisals focus on inherent soil qualities such as texture, drainage, and slope rather than on soil health practices. This means two fields with different management histories often receive the same valuation.
Yet healthier soils deliver real benefits that appraisals may miss:
- Stronger yields and lower input costs
- Improved resilience during droughts or heavy rainfall
- Long-term viability for the next generation
By investing in soil health now, landowners can sustain value and productivity, making succession smoother and more lucrative.
Soil Health and Profitability
The average US farmer is nearing 60, and a significant share of agricultural land is managed by those planning to retire in the coming years. Without a clear plan, valuable farmland can be lost to development or passed on with depleted soils.
For heirs and buyers, long-term viability matters as much as the asset’s price. Farms with well-managed soils and consistent profitability should attract more interest and command higher prices.
In the context of succession planning, soil health directly impacts the bottom line.
- A study by the Soil Health Institute found net income gains of $51.60 per acre for corn and $44.80 for soybeans when farmers adopted soil health practices.
- Reduced fertilizer costs, better yields, and enhanced resilience to extreme weather outweigh expenses such as cover crop seed.
- Nearly all participating farmers reported greater weather resilience.
Further, while soil health improvements aren’t yet systematically reflected in appraisals, momentum is building.
Appraisers and lenders increasingly consider evidence such as organic matter tests, yield records, and reduced fertilizer use. Documenting these improvements strengthens your case in private sales or succession discussions. Farms with well-managed soils are likely to earn premiums as valuations evolve, while those with degraded soils may face discounts.
The Good News
Improving soil health doesn't need to take decades.
Practices like reducing tillage and maintaining cover can show results within a few seasons. Biological amendments can accelerate progress even further. Re‑Gen helps break down crop residue in the same season, releasing nutrients back to the root zone and improving the soil microbiome. These quick wins boost both profitability and conservation goals.
Used alongside practices such as cover crops and thoughtful nutrient management, Re-Gen helps farmers make good soils even better, ensuring that farmland passed on to the next generation remains resilient.
Practical Steps for Succession Planning
- Assess your baseline: Test and document soil organic matter, nutrient levels, and structure.
- Adopt practices now: Even in the final years of active farming, adopting reduced tillage, cover crops, and efficient nutrient management can quickly improve soil health.
- Track economics: Maintain records of costs, yields, and labor. This data builds confidence with heirs and prospective buyers.
- Share results: Provide appraisers and lenders with soil test results and management history to highlight improvements.
- Plan with stewardship in mind: A clear succession plan that includes soil health expectations ensures that both value and legacy are preserved.
The Bottom Line
Succession planning is more than transferring property. It’s about handing down a viable, resilient business.
Healthy soils enhance profitability, reduce risk, and make farmland more attractive to heirs and buyers. While appraisal systems continue to evolve, farmers who invest in and document soil health today are positioning their operations for stronger land values and smoother transitions tomorrow.
Re-Gen can make a tangible difference in your farm’s soil health, today and tomorrow. If you’d like to learn more, we’d love to hear from you.
