The current state of land value throughout the United States is two distinct stories: cropland sales and values are skyrocketing, while wooded land and recreational land is stagnant in comparison.
While cropland is in high demand, the question is whether or not there is a farmland value bubble. We don't know the ansswer to that, but we do know there has been a fast rise in cropland prices while the rest of the national economy has been mostly down.
Wooded or vacant, non-tillable land sales have been slow and prices have gone down in some areas. In parts of the mdiwest, this land can be bought for $1,000/acre, while good cropland is going for $7,000-$10,000/acre.
What is the better value right now?
The answer to that question has many variables, such as your location, experience and how you plan to use the land, but all things being equal, this is how you can think through the land value variable.
Since cropland has gone up quickly, there are several people considering a possible decrease in value in the future from current prices. With such a large difference in prices in some areas for tillable vs. non-tillable, several speculate that non-tillable is currently the undervalued type of land.
That said, because of long-term global population growth and economic ascendence of much of the world's population, the demand for food is going to keep rising, and in return making good cropland land a very necessary resource.
When making a decision, it always comes down to analyzing that particular deal, and all the reasons it makes sense.
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