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Between 2021 and 2022, U.S. farm real estate values increased 12.4%, cropland values increased 14.3%, and pasture values went up 11.5%. Are you considering getting in on these rising values for future ROI? If so, knowing where to find the best farmland in the USA is key.
While many states offer great options, some have greater advantages than others. So, if you’re looking for the best farmland in the USA, look to the following 10 states.
Yes, it’s some of the most expensive real estate in the country, but California also offers advantages to farmland investors. It offers some of the best farm income in the nation, and there are more farm workers per capita here than in any other state.
California’s biggest crops include nuts, vegetables, fruit, and cannabis. While these products are typically profitable, California’s climate is susceptible to drought. This adds some risk to investing in farmland in the Golden State.
This is probably the state most Americans think of first when asked, “Where is the best farmland in the USA?” It’s the leader in corn and soybean production, which are the most profitable crops in the U.S. The state also offers popular sustainable farming methods, and farm labor is easy to find here.
The downside? Investing here is not cheap. Iowa features some of the most expensive farmland in the country. The average farm real estate value in 2022 was $9,400 per acre.
Kansas isn’t going to provide the lowest prices, but it offers stability and profit. The state has a solid rural infrastructure, and most of the state is dedicated to farming.
The well-developed farming industry in Kansas makes it a leader in grain and wheat production. Farm incomes are typically profitable, and grain prices have been on the rise in recent years. This makes Kansas a top pick for best farmland in the USA.
Again, the focus here is grain crops, so if you prefer ranch land, Kansas probably isn’t your best bet. Additionally, due to its success, Kansas agricultural land prices continue to rise, so investments here should be made sooner rather than later.
Kentucky offers several options for investing in the best farmland in the USA. It’s a great place to grow soybeans, profit from tobacco crops, or raise livestock.
Tobacco offers the advantage of being easy to grow. However, wheat and corn are always in demand, and these crops are also grown in Kentucky.
Prices for farmland here are slightly higher than the national average. However, due to the lucrative crop options available, the ROI may still be worth considering.
If your highest priority is low cost per acre, Montana is a top choice for the best farmland in the USA. In 2022, the average value of farmland real estate was $1,060 per acre. This makes it one of the cheapest states for farmland investing.
However, this is no secret. The number of farms in Montana increased dramatically in 2021 as investors sought out great deals. This means you might need to act quickly to get in on the low rates Montana currently offers.
As for what to grow on the land, wheat is a big commodity in Montana. And if ranching is more your style, sheep, wool, and beef are also big in this Big Sky Country state.
Most of this state’s land is dedicated to agriculture. It features fertile soil, and it’s one of the cheapest states for the best farmland in the USA. Prices in North Dakota are highest in the fertile Red River Valley region, but the overall state average still puts it in the bottom six states for farmland value.
Yet, North Dakota offers some of the highest farm income in the country, with a solid agricultural foundation. Top crops here include dry beans and honey.
For another low-price-point option, Oklahoma offers some of the best farmland in the USA. If you’re looking to gobble up a lot of real estate for less investment, this could be your go-to state. However, farm income is also lower here.
Still, the state does offer farmland regions and infrastructure that are solid and well developed. Since these are crucial to support ongoing growth and success, they are a good selling point.
As for what this land produces, Oklahoma is good for wheat and cattle. This makes it a potential good investment for either ranching or cropland.
South Dakota offers a nice balance of high farm income and lower-than-average farmland cost. This makes it feasible to invest in a good chunk of acreage without breaking the bank, and enjoy confidence that it will return good value.
Due to these trends, farm estates in South Dakota typically include more acres than average family farms. And on many of this land, you’ll find corn. This is one of the state’s main products.
If you’re into cattle ranching, the Lone Star State offers some of the best farmland in the USA. Texas is a top producer of beef cattle. Pasture land pricing averaged $2,050 per acre in 2022. These prices aren’t the lowest in the country, but they are on the lower end.
The sunny skies and year-round heat of Texas also make it a top locale for cotton crops. The average Texas cropland value in 2022 was $2,420 per acre. That makes it more expensive than ranch land in Texas, but cheaper than cropland in 43 other states.
Wyoming offers some of the lowest cost-per-acre farmland in the country. In 2022, the average value per acre was $850. This is roughly one sixth of the national average.
Another big advantage in the Cowboy State is the tax structure. You’ll find some of the lowest property taxes in the country here. There’s also no state income tax. These benefits can make Wyoming a good option for investing in some of the best farmland in the USA.
Which state is right for you?
If you’re considering investing in farmland, it’s important to understand the benefits each state offers. Decide what is most important: current cost of the land, future value of the land, profitability of the crops, or type of crops the land supports. Determine your top priorities, then look to these 10 states for some of the best farmland in the USA for your investment opportunities.