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How Much Does an Acre of Land Cost in 2022?

It’s no secret that the cost of land is on the rise. In fact, the cost of an acre of land has been steadily increasing for years and doesn’t seem to be slowing down any time soon. But what does this mean for farmers and ranchers? How will the rising cost of land impact our lives in the coming years? And more importantly, how much will an acre of land cost in 2022?

In this blog post, we will take a look at the current state of the land market and try to predict how much an acre of land will cost in 2022. We will also discuss the factors that are driving up the price of land and what impact this will have on farmers and ranchers.

How Big is an Acre of Land?

To understand how much an acre of land costs, it’s important to know how big an acre actually is. An acre is a unit of measurement that can be applied to any land area. An acre is equal to 43,560 square feet, or about the size of an American football field. In different units of measurement, an acre of land is also equal to:

  • 4,046.86 square meters
  • 4,840 square yards
  • 0.01 square furlongs
  • 0.002 square miles
  • 0.405 hectares

5 Factors That Affect the Price of an Acre

Now that we know how big an acre of land is, let’s take a look at the five main factors that affect the price of an acre of land:

1. Location: The location of the land is one of the most important factors that affect the price. Land that is located in a rural area will typically be cheaper than land that is located in an urban area. This is because land in an urban area is in high demand due to the limited amount of space.

2. Economic Productivity: The economic productivity of the land is another important factor that affects the price. Land that is used for farming or ranching purposes is typically worth more than land that is not being used for anything. This is because productive land can generate an income, while non-productive land cannot.

3. Industrial Development: Another factor that affects the price of land is industrial development. Land that is located near factories or other industrial facilities will typically be more expensive than land that is not located near any industrial development. This is because companies are willing to pay more for land that is close to their facilities.

4. Terrain: The terrain of the land is also a factor that affects the price. Land that is level and easy to build on will typically be more expensive than land that is hilly or has a lot of trees. This is because it costs more money to develop land that is not easy to build on.

5. Supply and Demand: The final factor that affects the price of land is supply and demand. If there is more demand for land than there is supply, then the price of land will increase. This is because people are willing to pay more for land when it is in high demand.

Now that we know the five main factors that affect the price of an acre of land, let’s take a look at the current state of the land market and try to predict how much an acre of land will cost in 2022.

What’s the Current Farm Real Estate Value?

According to the 2021 report of the National Agricultural Statistics Service Information, the value of farm real estate in the US averaged $3,380 per acre. This is 7% higher than the value in 2020, which was $3,160 per acre. While the US cropland value averaged $4,420 per acre, a 7.8% increase from the previous year. The US pasture value, on the other hand, averaged $1,480 per acre, a 5.7% increase from 2020.

5 States With the Priciest Cost for an Acre of Land

Among all the states, here are the top five with the priciest cost for an acre of land:

1. Rhode Island – $16,400

2. New Jersey – $14,400

3. Massachusetts – $13,700

4. Connecticut – $12,500

5.  California Р$10,900

These are the five states with the priciest cost for an acre of land as of 2021. If you’re planning to buy a piece of property in any of these states, then you should expect to pay a higher price than the average. It’s also worth noting that the price of an acre of land can vary greatly depending on the location within the state.

5 States With the Most Affordable Cost for an Acre of Land

On the other hand, here are the five states with the most affordable cost for an acre of land:

1. New Mexico – $600

2. Wyoming – $790

3. Montana – $930

4. Nevada – $1010

5. Colorado – $1610

If you’re looking for a more affordable option, then these are the five states you should consider. However, it’s important to remember that the price of an acre of land can still vary greatly depending on the location within the state.

What’s the Trend in Farmland Prices?

The average value of farm real estate has been increasing for years and is expected to continue to increase in the future. The main reason for this is that there is a limited supply of farmland and a growing demand for it. The demand for farmland is being driven by the increasing population, which is leading to more people needing food. The limited supply of farmland is due to the fact that there is only so much land available. This combination of factors is expected to continue to drive up the price of farmland in the future.

Should You Still Invest in Farmland?

If you’re thinking about investing in farmland, then you should do so sooner rather than later. The price of farmland is expected to continue to increase in the future, so it’s a good idea to get in while the prices are still relatively low. You can expect to see a good return on your investment if you buy farmland now and hold onto it for the long term.

Don’t Know Where to Start?

If you’re not sure where to start in your journey to invest in farmland, Farm Plus Financial can help. We’re a leading provider of farm loans and can help you finance your purchase of farmland. We offer competitive rates and terms on our loans, so you can be sure you’re getting the best deal possible. Give us a call today or visit our website to learn more about our farm loans and how we can help you finance your next venture.

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