Rising Land Values Benefit Texas Ranch Owners More Than Most
In the past year only two states outgunned Texas: Nebraska (8.6%) and Missouri (6.6%) in the pastureland category, and Missouri alone (10.4%), in farm real estate values. Texas was unmatched nationwide for its cropland value appreciation.
A new report by the U.S. Department of Agriculture finds that land values in the United States have risen substantially in the past year, including in Texas.
According to the survey, cropland value per acre increased 1% nationally from 2017 values. Last year, an acre of farmland would have cost the average investor $4,090 to purchase; today it’s worth $4,130.
For investors in the Lone Star State, Texas land rose in value by 4.5% of 2017 values, considerably faster than the national rate, with one acre costing an average of $2,010 last year and $2,100 this year.
The numbers become even more impressive for owners of pastureland. In the United States as a whole, values rose 3% - from $1,350 in 2017 to $1,390 in 2018. In Texas, the rate of increase was again greater than the rest of the U.S. (6.1%, rising from $1,650 to $1,750).