Corn Acreage Spikes 29% in Tennessee: What It Means for Agricultural Appraisals and Farm Values
As planting ramps up across the Southeast, Tennessee farmers are making a notable shift in crop strategy—most prominently, an estimated 29% increase in corn acreage in 2025, according to the latest USDA data. While this surge aligns with a 5% national increase, it reflects a significant shift in both operational and financial planning on the part of growers. At AgValue Consulting, we view changes like these as critical market signals that directly influence agricultural valuations, lending dynamics, and long-term investment decisions for our clients.
What’s Driving the Shift Toward Corn?
Farmers like Brent Griggs in Gibson County are turning more acres over to corn this year due to a combination of improved early-season planting conditions, rotational strategy, and corn’s comparative economic advantage over soybeans and wheat. Although corn prices aren’t ideal, they still offer better yield potential and price performance than competing crops in 2025, especially considering weather-related issues that suppressed corn planting in 2024.
For many producers, this strategic pivot is about maximizing return per acre under persistent market volatility. And while Griggs’ story is rooted in West Tennessee, the decision-making patterns he describes reflect a broader agricultural trend we’re tracking across the Southeast.
What Does this Mean for Farm Valuations and Appraisals
At AgValue Consulting, we analyze more than just soil types and structures—we take into account current market dynamics, crop rotations, and farm management practices when performing appraisals. The increased focus on corn in Tennessee brings with it several implications:
📈 Revenue Forecasting and Cash Flow
The shift toward corn—especially on larger operations—has the potential to improve revenue projections based on historic yields and crop insurance trends. For farms that execute well in terms of input management and harvest timing, this can boost net operating income, which in turn supports higher farm valuation multiples.
🏗️ Investment in Infrastructure
Increased corn acreage often means greater reliance on grain storage, irrigation systems, and mechanized equipment. These capital investments, when maintained properly, add both tangible and intangible value to an agricultural operation. For lenders or buyers, seeing a farm aligned with long-term infrastructure needs increases appraisal confidence and marketability.
💰 Land Use and Rotational Planning
A heavier corn footprint may influence how certain parcels are viewed from a productivity standpoint. Fields ideally suited for corn may command higher per-acre values compared to those with lower fertility or drainage issues that better support soybeans or hay
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📉 Commodity Price Risk
While corn acreage is increasing, prices remain below farmer expectations. This introduces valuation risk tied to volatile commodity cycles, reinforcing the need for appraisers and lenders to incorporate multi-year averages and sensitivity analysis into their assessments.
Advisory for Lenders, Landowners, and Ag Investors
AgValue Consulting recommends that landowners, ag lenders, and farm operators take a proactive approach as acreage mixes change:
Request updated valuations to reflect current cropping patterns and market outlooks.
Review insurance coverage levels for corn-heavy operations.
Monitor cash flow and liquidity, especially if operations are heavily leveraged on expected corn income.
If considering land purchases, evaluate how corn-specific agronomy and input costs will impact long-term land productivity and ROI.
Contact AgValue Consulting for Your Tennessee Valuations Needs
The anticipated 29% increase in Tennessee corn acreage is more than just a statistic—it’s a signal of strategic decision-making among farmers navigating economic headwinds. At AgValue Consulting, we understand how these cropping trends ripple through every layer of farm management, valuation, and lending. Whether you’re seeking an appraisal, need support in farm management decisions, or want clarity on how market shifts affect your property’s worth, our seasoned experts are here to help.
📞 Contact AgValue Consulting to schedule your next appraisal or strategy session. Let us help you turn this year’s planting decisions into long-term value for your operation.