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Alabama grows a diverse mix of crops and is one of the largest producers of Poultry and Livestock in the nation. Once known as "The Cotton State", Alabama still ranks number 8 in the nation for the export of cotton, however, today Poultry, Cattle, Grains, and Nursery crops are ahead of cotton in sales rankings. Agriculture is one of the top industries in Alabama, as more than 1 in 5 jobs in the state are Ag related. As of 2017, there were 40,592 farms spread across 8.5 million acres of farmland in Alabama with an average farm size of 211 acres.

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Farmland Rental Rates

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alabama Farmland Rental Rates

Over the last 20 years, farmland rental rates per acre in the alabama have risen from an average of $33 per acre in 1999 to $64 per acre in 2019. This represents an increase of $30 over this time period with an average implied capitalization rate of 1.9%.

$64

Current Rental Rate Per Acre

Cash Rent per Acre

Source: USDA

Created with Highcharts 7.2.019941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019$ 0$ 15$ 30$ 45$ 60$ 75Highcharts.com

1.9%

Average Annual Cap Rate

Implied Annual Capitalization Rate

Source: USDA

Created with Highcharts 7.2.0199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820190 %0.8 %1.6 %2.4 %3.2 %4 %Highcharts.com

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