Brazil's farmland-cost advantage over the United States has narrowed substantially, according to a new comparison from Purdue University's Center for Commercial Agriculture. Researchers compared farmland values in Iowa and Mato Grosso, Brazil, two major soybean and corn-producing regions, from 2002 through 2025. Iowa farmland values increased from $2,083 per acre in 2002 to $11,549 in 2025. Mato Grosso values rose from substantially lower levels but reached $11,145 per acre in 2022 before falling to $9,066 in 2025. Over the full period, farmland values increased at an annual compound rate of 7.7 percent in Iowa and 8.7 percent in Mato Grosso. By 2025, Iowa farmland values were 27 percent higher. Researchers say strong farm profits and commodity prices drove land values higher in both countries, while more recent declines in crop prices, rising input costs, and tighter credit have pressured Brazilian producers. The study says high Brazilian land values and interest rates have extended payback periods for farmers.
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