How to Find Affordable Farms

Buying a farm can be an excellent investment. To make the most of it though, you need to make sure you’re not spending more than you can afford on the property – or putting your hard-earned money at risk with land not suited to agricultural abundance.

Of course, finding an affordable farm isn’t necessarily an easy task. Farmland prices in the U.S. averaged more than $5,500 per acre as of 2023, and it’s not always obvious if a parcel is a good buy or not for a prospective farmer. You’ll need to focus on the details if you want to find a farm property that’s priced right and has the potential to increase in value in the future.

So how do you search for farmland that’s both cheap and valuable? Here’s where to start, including the three questions you need to ask before you close the deal. 

Basics of Buying Affordable Farmland

Finding an affordable farm for sale isn’t complicated so long as you have patience and a good idea of what fits your needs. 

Your first step is to run the numbers and know how much you are comfortable paying. Even if you’re not trying to turn a commercial profit with your farming, it’s still important not to borrow more than you can afford or invest in land with unpredictable outputs. 

For best results, start looking at the bottom of your price range and work your way up from there. You should also work with a local land broker in addition to searching on your own for cheap farms online. The wider the net you cast, the better chance you have of finding an affordable property with lots of long-term potential. 

Top Tips for Finding a Cheap Farm

There are all sorts of cheap farm properties out there. How you go about finding them depends on where you’re looking and what you’re trying to accomplish, though we do have some best practices you should keep in mind as you embark on the process. 

Tip #1: Know Which Areas to Target

Identify your target location right from the get-go. For farm properties, you generally want to look for rural areas with decent market values and local options if you decide to sell what you produce. You should also consider whether you want a residential or commercial property and where you’re most likely to find one. 

Tip #2: Regularly Track Official Listing Sites

You’re probably not going to find your perfect affordable farm property on day one. Instead, you’ll need to regularly track listing sites like LandHub to see what’s available and take action right away if something promising pops up. Government sites are a good place to look too and will feature farm properties listed for sale due to tax evasion, foreclosure, and other price-reducing factors. 

Tip #3: Focus on Undervalued Properties

An undervalued property isn’t just cheaper to buy – it also provides you with immediate equity that boosts your investment and gives you a greater margin for faults. Some ways to find undervalued farmland include looking at fixer-upper properties in good locations and searching for those that have been on the market for an extended period and may have had their price reduced as a result. 

Tip #4: Look in Small Towns

If there’s one thing that many small rural towns aren’t short on, it’s agricultural land. While location should always be a top priority, you may find a cheaper property if you give yourself some wiggle room and seek out land outside of the hustle and bustle of large metropolitan areas. (That being said, you probably want to avoid unproven markets that could take decades to see a real appreciation in value.)

Tip #5: Hire a Reliable Broker

Land brokers are real estate agents that specialize in the buying and selling of land. As such, they’ll be a fantastic asset to you if you’re looking for an affordable farm to buy. Brokers often have access to properties that haven’t been publicly listed yet, and they can also provide you with an objective opinion when you’re trying to decide if a cheap property is worth the buy. 

Questions to Ask Before You Buy

You’ve narrowed down your search and found what might be the perfect affordable piece of farmland. Before you buy though, ask the following questions to ensure that low-priced property isn’t actually too good to be true. 

1. Is the Soil Good for Farming? 

Whether a location is suitable for farming depends highly on the type and quality of soil on the property. Invest in soil testing to pin down what you’re working with, how healthy it is (or not), and what crops and farming activities will do best there. 

2. Is There Clean Water?

You’ll obviously need clean water on the property – and lots of it. If you’re in doubt, consult drillers or other professional water suppliers regarding the water supply on the property and whether it’s (a) suitable and (b) abundant enough to support your agricultural plans. 

3. Are the Building, Fences, and Utilities in Working Condition?

If a farm property is priced low but comes with a ton of upfront structural expenses, that’s not a good deal. While you should expect to spend some money getting your farm up and running, things like fences, buildings, access roads, and utilities should be working and ready to put to use. 

Key Takeaways

Finding that ideal cheap farm takes time, patience, and a bit of luck. Follow the tips above to increase your chances of a great score, and don’t be afraid to ask for help when you need it from local agents, surveyors, and farmers, all of whom may have valuable insight on your affordable farmland search. 

Want to see what’s available? Search farmland for sale on LandHub and sort by price and location to see what’s currently on the market.