7 Least expensive States To Buy Farmland in 2023

Trying to buy inexpensive farmland within the US?

Farmland prices across the USA have been on the rise, making it difficult for aspiring farmers or investors to search out inexpensive options. Nevertheless, in case you’re working with a budget, there’s still hope.

Try our comprehensive list of the ten least expensive states to purchase farmland within the US in 2023 and discover where you may sow the seeds of your future without breaking the bank.

Oklahoma

Farmland prices in Oklahoma have risen by a mean of 6.1% per yr over the past 20 years, showing it’s a solid investment.

The typical price is just $1,870 per acre, while some acres can go for as little as $500 per acre, depending on the soil quality and what’s included.

The low price per acre and abundance of open space in Oklahoma allows farm owners to buy more land for less. 

Oklahoma’s rural communities and infrastructure are well-established, with a robust concentrate on wheat, cattle, and other livestock production.

In case you’re seeking to buy an existing farm or ranch in Oklahoma, chances are you’ll find a very good deal from older farmers and ranchers seeking to retire and pass on their land.

Some provide owner financing or rent-to-own options to assist recent farmers start.

Montana

With nearly 300,000 acres of farmland on the market and costs under $2,000 per acre, Big Sky Country offers loads of elbow room for brand new farmers.

Montana produces a big selection of commodities, especially wheat and beef. It’s a national leader in organic wheat, dry peas, lentils, and flax.

The state’s farmers and ranchers utilize sustainable practices to work in harmony with the natural environment.

The fee of living in Montana is well below the national average, so your dollar will go further. Even Billings, its largest city, is a really inexpensive place to live.

Property taxes are also lower than average. In keeping with recent estimates, farmland sells for $1,030 per acre in Montana, lower than half the national average.

Montana’s average cropland lease rate is $31 per acre, while average money rent for irrigated cropland in Montana us $104.00 per acre.

Montana offers incentives for agricultural businesses, including tax credits and exemptions for certain farm equipment and renewable energy investments.

They’ve programs supporting local food production, organic certification, and starting farmer training.

North Dakota

Similar to Fargo is the right city to calm down and lift kids, North Dakota may very well be the perfect state in case you’re seeking to buy inexpensive farmland and sow seeds.

With farm real estate values averaging just over 2,320 per acre in 2023, up 13% per acre from last yr., ND ranks as some of the budget-friendly states for agricultural property.

Almost 90% of ND’s land is used for farming and ranching, supported by well-developed infrastructure.

ND’s stable economy and business-friendly policies also make it a horny state for brand new farmers.

ND’s diverse and emerging crops mean opportunities for prime returns.

Along with traditional grains and livestock, the state is becoming a hotbed for industrial hemp, hops, fava beans, and carinata. Farming in ND may be very profitable with the power to diversify and add value.

Home to over 33,000 farms and ranches, ND’s agricultural roots run deep.

Nearly every resident is connected in some option to farming or ranching. This tight-knit community will welcome and support you as a brand new farmer.

Livestock, especially cattle, also plays a crucial role in ND’s farm economy. With more cattle than people, ND ranks high in beef production.

As a brand new farmer, you’ll have the prospect to become involved on this thriving industry.

Wyoming

Wyoming may very well be a fantastic state for you to contemplate purchasing farmland. Land and taxes listed below are very inexpensive.

Farmland rental rates per acre in Wyoming have risen from a mean of $54 per acre in 2009 to $50 per acre in 2019, which remains to be lower than most other states.

Prices for farmland real estate in Wyoming increased only 14.33% from 2020 to 2023, to $860 an acre. This can be a fraction of the associated fee in states like Iowa or Illinois.

The state also offers low property and no state income taxes, allowing you to maintain more of your hard-earned money.

Over 11,000 farms produce goods across Wyoming’s 30 million acres of farmland.

Hay for livestock makes up much of the crops, but wheat, oats, barley, and corn are also grown. These grains are Wyoming’s Most worthy farm exports.

Texas

The value of farmland per acre in Texas has steadily risen over the past 20 years but stays lower than most other states.

Texas leads the nation in farms and ranches, with over 248,000 covering 127 million acres. This abundance of agricultural land helps keep costs lower.

Texas’s average price per acre of rural land was just over $5,000 in 2023. For the budget-conscious farmer, Texas can’t be beat.

In reality, there are even programs where you may receives a commission to maneuver to the state of Texas, adding one other layer of economic incentive.

The state’s primary crops – cotton, corn, sorghum, rice, and wheat, mean good opportunities for crop diversification.

Texas has long been a pacesetter in national agricultural production, especially beef cattle. It’s no wonder Texas has earned the nickname “the Mecca of agriculture.”

With its massive size, Texas offers loads of room for expansion. There are a lot of areas still open and undeveloped, especially farther west. That’s the predominant reason why Presidio County, Texas, is the most cost effective place to purchase land within the US.

The state has a wide range of terrain, from the forests of the east to the deserts of the west, so you’ll find land suitable for raising nearly any form of livestock or crop.

The low business costs in Texas, with low taxes and limited government regulation, create an inviting environment for farmers and ranchers.

The state actively works to support agricultural industries and promote their success. In case you’re also considering safety aspects in your family while in search of farmland, you’ll want to take a look at our guide on the safest cities to live in Texas.

Kansas

Kansas has a mean price of farm real estate at $2,630 per acre, up 25% from the previous yr, making it a horny option for aspiring farmers or investors.

Kansas is a pacesetter in wheat, sorghum grain, and beef production. The dairy industry is rapidly growing, together with other animal agriculture sectors.

Major agricultural exports include beef, wheat, soybeans, and corn. Agriculture contributes over 40% of the whole Kansas economy.

Kansas has essentially the most prairie soil acres of any state. Harney Silt Loam is good, with wealthy, dark prairie soil qualities. This nutrient-dense land is ideal for cultivating crops or raising livestock.

The state’s central U.S. location provides easy accessibility to move goods to major cities like Denver, Omaha, and Oklahoma City.

Major highways, railways, and the Kansas City International Airport simplify the distribution of products nationwide and overseas.

While the state’s agriculture relies on the High Plains Aquifer for irrigation, Kansas encourages sustainable farming practices and water conservation.

Farmers profit from multiple state and federal programs supporting soil health, water quality, and renewable energy.

Btw, In case you are curious about living in heavily rural areas, you may even get land freed from charge in Kansas.

South Dakota

With a mean price of only $2,920 per acre in 2023, up 12% from 2022, South Dakota farmland is a bargain.

During the last 20 years, farmland values in South Dakota have increased a mean of 9.7% every year, showing its stability and growth potential as an investment.

Corn and soybeans are the key crops in South Dakota. Farmers also grow wheat, sunflowers, alfalfa, and vegetables.

Cattle ranching is a giant business in South Dakota. Ranchers raise beef cattle, dairy cattle, pigs, chickens, turkeys, and sheep.

The state’s agriculture economy is robust and diverse. Along with crop farming and ranching, South Dakota has food processing plants, ethanol refineries, and other agribusinesses.

South Dakota has no state income, estate, or inheritance tax. Property taxes are also low in comparison with other states.

The general cost of living in South Dakota is well below the national average, especially for housing and healthcare. Even its largest city, Sioux Falls, is a really inexpensive place to lift a family in comparison with cities of comparable size.

For farmers and ranchers, lower costs mean higher profit margins and a lower barrier to getting began.

Between the cut price farmland prices, strong ag economy, and low price of living, South Dakota is an appealing place for anyone seeking to buy or start a farm or ranch.

The state offers opportunities for starting farmers to get into agriculture or for established farmers to expand their operations at an inexpensive price. 

Final Thoughts

While the USA is usually considered an expensive country, there are still states that supply affordable farmland.

Specifically, Oklahoma, Wyoming, South Dakota, Montana, North Dakota, and Texas have ample land at cheaper rates.

These states not only have lower land prices but additionally offer incentives like tax credits, developed infrastructure, and established agricultural communities.