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This study assesses agricultural economics literature on farmland prices and key determinants of these prices. The first section of the paper uses a basic capitalization model to organize a review of the literature and data. We then provide a focused assessment of five streams of literature examining farmland prices: (1) boom‐bust; (2) the capitalization effect of government agricultural subsidies on farmland prices; (3) agricultural zoning; (4) climate change; and (5) prohibitions against non‐local buyers of farmland. Our review highlights challenges to ongoing efforts to model changing farmland prices, the modern emphasis on econometric identification, important variation in the magnitude of estimated relationships across the literature, and the opportunity to expand research in Canada. [ABSTRACT FROM AUTHOR]