Per the USDA 2024 report, agricultural land value (all land and buildings on farms) increased 5% from 2023 and averaged $4,170 per acre. Cropland values improved by 4.7% and pasture 5.2% from the year prior. Although the values continued to increase, we are seeing a noticeable slowdown in growth which may result long-term in more favorable purchase prices for cropland and other agricultural land.
Here are the ten states with the least expensive price per acre for agricultural land:
1. New Mexico
New Mexico is considered the leader in pecan and chile production. The state’s main farmland production focuses on beef, milk, hay, corn, wheat potatoes and more. New Mexico ranks in the top 10 nationally for both cheese and milk production. At $700 per acre, New Mexico remains one of the most affordable states for farm real estate.
2. Wyoming
The state classifies agricultural land into three main groups – irrigated crop land, dry crop land, and range land. Large cattle ranches are common in Wyoming and the price per acre for agricultural land remains low at $975. The state offers great opportunities for farmers and the most common grain crop is hay, wheat, oats, barley. Due to the low precipitation in the western portion of the state, the majority of the cropland is irrigated.
3. Nevada
Nevada’s price per acre is just below Montana’s at $1,150. With the low cost and the growing population, Nevada is a great state to invest in farmland. The state’s main agricultural industry is range livestock but the state also produces Alfalfa hay, potatoes, barley, and winter and spring wheat.
4. Montana
Montana’s farm real estate average value per acre is $1,200. Although Montana’s unpredictable weather can disrupt growing seasons, agriculture is the state’s largest industry. Livestock like beef cattle, dairy products, hogs, and sheep account for about 48% of Montana’s yearly agricultural production. The vast majority of the 2 million acres of irrigated land is allocated to growing hay.
5. Colorado
Colorado’s price per acre averages at $2,200. Having an advantageous climate for agriculture and being well-known for many agricultural and livestock industries, Colorado is a favorable state to purchase agricultural land. Known for large livestock ranches, orchards and crops like corn, beans, sugar beets and small grains Colorado is an important agricultural state.
6. North Dakota
With just a marginal per-acre difference, North Dakota comes right behind Colorado at $2,260. One of the large advantages of buying agricultural land in North Dakota is the access to extremely fertile soil. North Dakota’s climate is ideal for raising healthy livestock and producing high crop yields. The state leads the nation in spring wheat, sunflower production, and honey. Nort Dakota has abundant crops and cattle and is expanding its capabilities in industrial hemp and hops.
7. Oklahoma
Oklahoma’s farm real estate average value per acre is $2,400. The state’s policies encourage agricultural production and conservation efforts. Oklahoma’s agricultural production is divided, with the eastern part of the state mainly pasture and the western half dominated by cropland. Winter wheat is the state’s most important crop and an abundant cattle and calf industry.
8. South Dakota
South Dakota has a price per acre of $2,780. South Dakota’s agriculture is a major contributor to the state’s economy. The state is one of the main producers of corn, soybeans, wheat, and oats in the country. South Dakota’s farmland accounts for approximately 43 million acres. The state is also a significant producer of livestock and poultry.
9. Kansas
Right behind South Dakota comes in Kansas with a $2,970 price per acre. Kansas is an ideal location for agricultural production due to its fertile soil and easy water access. Farmland in Kansas also has diverse agricultural potential ranging from wheat fields to cattle ranches. The state ranks number 1 in the nation for wheat and sorghum production.
10. Maine
10th most affordable state to purchase agricultural land is Maine with a price of $3,260 per acre. Maine has very rich soil which is great for all types of farming selections. From blueberries and maple syrup to dairy and grain the state lands itself on the list of some of the best agricultural resources in the nation. Main has approximately 1.3 million acres of agricultural land.
