Farm real estate valuation in the United States averaged $3,160 per acre in 2019, an increase of $60 per acre (1.9 percent) from 2018. Cropland value in the United States averaged $4,100 per acre, up $50 per acre (1.2 percent) over the previous year. Farm real estate valuation in Canada averaged $2,640 per acre in 2019, down $10 per acre (0.4 percent) from the previous year. Cropland value in Canada was $1,680 per acre, down $30 per acre (1.7 percent).
The United States is the world's largest producer and exporter of corn, wheat, and soybeans. It is also the world's second-largest rice producer. The U.S. Census Bureau estimates that the country had 48 million acres of farmland in 2019, about 15 percent of which was planted to crops. Of that amount, about 12 million acres were considered prime farmland, capable of producing at least 50 bushels of corn per acre. The rest was classified as other farmland.
In Canada, farmers produce nearly all of the food for human consumption within the country. In 2019, they produced about 7 million tonnes of grain - primarily corn but also including barley, wheat, and soybeans - which accounted for 95 percent of the national crop. The remaining 5 percent was made up of small amounts of potatoes, carrots, tomatoes, and peas.
The average acre in the United States was sold for $3,020 in 2015. The Corn Belt area had the highest agricultural prices, with property selling for $6,350 per acre. Land with timber may differ depending on the age of the timber. In general, younger trees are more valuable than older ones. Agricultural land is generally less expensive in states such as California and New York where agriculture plays a smaller role in the economy.
This average includes both private and public lands. There are many tracts of land that are only available through private sale or contract. These may include farms, ranches, and other rural properties.
There are also government agencies that sell land. Federal agencies include the Department of Agriculture, the Department of the Interior, and the National Park Service. State agencies include the Forestry Services agency of each state department of forestry. Local governments may have departments called Community Development or Planning offices who sell land. They can be found in most large cities across the country.
Farmland is one of the most important factors in determining how much your house will cost. The more farmland there is in your county, the higher the value of real estate. The amount of farmland and non-farm areas (such as towns) within a region helps determine the type of soil and climate there. This affects what crops can be grown and where they can be grown best.
The price of farmland per acre in the United States has climbed by an average of 4.5 percent per year over the previous 20 years, reaching $4,442 per acre in 2019. This is a $2,394 increase per acre of agriculture throughout this time period. The values listed here are just for farmland appreciation. You also need to account for inflation and other factors such as government incentives that may influence how much your land is worth.
Rural land can be valuable because it's often close to cities or other populated areas which makes it easier for people to live their lives out there. Land in rural areas tends to be cheaper than land in urban areas because there's less demand for property in those places.
Farmland appreciation depends on many factors such as location, size, improvements, etc. But overall, rural land can be worth more because there's less competition for it.
According to the USDA's National Agricultural Statistics Service-Land Values 2019 Summary, Minnesota's farm real estate value, which measures the value of all land and structures on farms, averaged $4,840 per acre. This is a $10 decrease from last year. The average farm real estate value in Minnesota was $20,000 per acre.
Farmland is defined as arable land that is used for growing crops. Farmland can be further divided into three categories based on how it is used: crop, pasture, and horticulture. Crop farmland is land that is used to grow plants for food or fiber. This includes fields that are used exclusively for growing corn, soybeans, wheat, oats, barley, alfalfa, and other grains. Pasture farmland is land that is used for raising livestock for meat or milk. This includes fields that are used exclusively for raising cattle, sheep, goats, and horses. Horticulture refers to land that is used for growing flowers and trees, such as gardens and orchards. This type of farmland accounts for only 10% of the state.
In addition to being useful for producing food, farmland can also be beneficial for environmental purposes. Land that is used for growing crops needs to be fertilized with nitrogen, phosphorus, potassium, and other chemicals to promote plant growth. If this land is not cleaned up after harvesting, it can lead to soil erosion and pollution.