A model of farmland accumulation analyzes the impact of credit allocation and the level of debt on farmland prices. The model stresses the importance of the real net wealth accumulated by the farming sector on the lending procedures for farmland purchases. It is shown that credit allocated on the basis of wealth not only increases farmland prices but also destabilizes them. The paper presents the model of individual accumulation to derive the farmland price equation whose dynamic properties are analyzed. A study of U.S. farmland data supports the theoretical results.