Buying Acreage For Farm Use: Common Faqs

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According to Farmland Info, there were more than 900 million acres of farmland in use in the United States in 2017. If you are a farmer who is in a position to expand the amount of acreage you have, investing in large tracts of property boasting several acres is likely what you plan to do. However, this kind of business move is bound to bring about some questions. Take a look at some of the common questions regarding acreage for purchase

What is the average cost for an acre of land in the United States?

The cost of an acre of land can drastically vary from one location to the next according to both real estate values in the area, the demand for the property, and how easy the property will be to develop. Even though prices can vary pretty incredibly, the average price per acre of agricultural ground given by the USDA in 2017 was $3,085. Of course, in areas known for more fertile land, you can expect to pay considerably more per acre. For example, acreage in the Corn Belt region of the United States can be substantially higher. 

Where can you find the largest tracts of acreage for sale for farm use?

Many of the larger states are going to be more likely to offer you larger tracts of hundreds of acres for sale. In smaller states, large tracts of land can likely still be found, but these tracts will be fewer and far between, which usually means they will be in higher demand and much more costly. As an example, a tract of 100 acres in a smaller state like Kentucky may cost you more than a tract of 100 acres in a state like Wisconsin because Wisconsin is larger with more wide-open land. 

Is it a good idea to invest in multiple land tracts you intend to use for the same purpose?

If there are multiple tracts of land for sale through different sellers and you are looking for a bulk of acreage for farming purposes, it can seem logical to buy the conjoined tracts and treat them as one large property. While this can work out well for some farmers, it is important to keep in mind that tracts from multiple sellers can come with different restrictions and things of that nature to consider. Just make sure the different tracts offer you what you need before making a bulk investment in several different tracts.