Farm real estate values averaged $2,100/acre on Jan. 1, 2009, down 3.2% from 2008. The 3.2% decrease is the first decline in farm real estate value since 1987, reports USDA in its just-released Agricultural Land Values and Cash Rents Annual Summary.

Both cropland and pasture values are down from the previous year. Cropland values declined by $110/acre (3.9%) to $2,650/acre. Meanwhile, pasture value declined by $20/acre (1.8%) from 2008 to $1,070/acre.

A decrease in the demand for recreational land also contributed to the overall decrease, USDA says.