How Much Does A Ranch Cost in Texas Today?

How much does a ranch cost in Texas today?

Two hundred years ago, settlers moved to Texas, drawn by the abundance of game, mild climate, and land promise. Today, these three factors still affect why people seek the lone star state’s vast expanse of ranches.

So, how much does it cost to buy a ranch in Texas? Can you get a mortgage?

There are excellent options for Texan ranches, spread with rolling landscapes of natural beauty. Different locations offer a variety of ranch sizes, but the average acre of a ranch in Texas costs $2,972. In this state, everything is enormous, and one hundred acres is considered a modest spread.

You can find a good ranch in Texas from 20 to 500,000 acres, setting you back $200,000 to $725 million respectively, for a ranch sprawling over several counties.

How Much Does A Ranch Cost in Texas Today?

Texas is vast and diverse, land-wise and population-wise. The state is classified into seven unique regions, ranging from sea-level plains to rugged desert countryside. There is no statewide average price for ranch listings as this fluctuates according to a region’s demand, terrain, availability, and ranch size.

Other than the average size of ranch land in an area, the type of operation it is zoned for, and the space needed for that enterprise will determine prices in Texas.

Region	Areas Included	Average Land Price per Acre
One	South Plains and Panhandle	$2,474
Two	Far West Texas	$1,350
Three	West Texas	$3,275
Four	Northeast Texas	$8,360
Five	Brazos Bottom and the Gulf Coast	$10,200
Six	South Texas	$8,415
Seven	Waco, Hill Country, and Austin	$8,690

 

 

In the table above, the first three regions bring down the statewide meanwhile land in the last four areas is luxury priced. Going by these numbers, you can surmise that a ranch in the plains, west Texas, and the panhandle will be cheaper than if you were buying in Waco, the northeast, or the gulf coast.

How many acres is a ranch in Texas?

Texas is home to a diverse range of ranches that can vary in size from a few hundred acres to several thousand acres or more, depending on location, topography, intended use, and history of the land.

According to the Texas A&M AgriLife Extension, the average size of a Texas ranch is around 440 acres, but this number can be misleading as it is skewed by the presence of large ranches like the King Ranch, which covers over 825,000 acres.

In reality, most ranches in Texas are much smaller, with over 90 per cent of Texas ranches being less than 1,000 acres. The size of a ranch can also vary depending on the intended use of the land.

For example, a ranch used primarily for cattle grazing may require more land than a ranch used for hunting or recreation. Additionally, the topography of the land can play a role in determining the size of a ranch, as a ranch located in a hilly or mountainous region may require more acreage than a ranch located in a flat or open area.

In conclusion, the size of a ranch in Texas is highly variable and can range from a few hundred acres to several thousand acres or more. The average size of a Texas ranch is around 440 acres, but this number can be misleading due to the presence of large ranches. Ultimately, the size of a ranch will depend on a variety of factors, including location, intended use, and topography.

Factors That Impact the Average Price Per Acre in Texas?

Over the past decade, the average price of ranches in Texas has continued on a moderate incline. Due to the diversity of the land in this state, real estate isn’t congruent with national averages.

For ranchland in Texas, the price per acre depends on plot size, terrain, availability, and demand for land. Since 2019, the sale volume for small tracts of land in Texas has declined in favour of larger ranches. ‘Small’ in the Texan sense is anything under 200 acres, and as you head out into the far west region, you’ll find the exact definition applied for between five hundred to 8,000 acres.

While small ranch sales have reduced for the rest of the state, south and west Texas are the only regions experiencing a boom. Prices are affected by factors which impact;

1. Location and Size of the Ranch in Texas

Since ranches in Texas are valued per acre, the more land, the higher the price you’ll pay. Alongside other usability features, where a ranch is located also plays a significant role in the impacting price.

2. Water and Mineral Rights

As critical as it is for any ranch operation, water is crucial when considering Texan spreads and their selling prices.

Properties can come with private or shared water rights, but they can also be encumbered, leased, or sold separately. Due diligence during your farmland property search in Texas, you’ll seek to find out if the water or mineral rights on the land are reliable.

3. Production Income of the Ranch in Texas

As with any investment, buyer confidence and price are emphasized by a ranch’s income potential in Texas. Irrigated lands or existing livestock operations are big draws for buyers since their water resources, corrals, perimeter fencing, or public land leases are already in place.

4. Sports Features

Listed ranchland that is well endowed in natural resources like water for fishing or quality wildlife has added sporting potential or value. Property owners in Texas can also offer landowner hunting or fishing tags as a revenue stream, especially if your land is in a game management area.

5. Conservation Value of the Ranch in texas

The worth of a ranch with enhanced conservation value can get heightened as wildlife or natural scenery will attract investment. Inherent private property values are also impacted by adjoining public land, especially natural flora and fauna designations.

How many ranches are in Texas?

According to the 2017 USDA Census of Agriculture, Texas had a total of 247,499 farms and ranches. However, not all of these are necessarily categorized as “ranches” since some may focus on crop production, poultry farming, or other agricultural activities. The number of strictly defined ranches in Texas is difficult to determine because there is no single definition of what constitutes a “ranch.”

Despite this, Texas is known for its vast expanses of ranchland, and it is estimated that there are tens of thousands of ranches across the state. These ranches come in various sizes and are typically family-owned and operated. They may specialize in different activities, such as cattle grazing, hunting, or recreation.

In Texas, ranching is deeply rooted in the state’s history and economy. The beef industry is a significant contributor to the state’s economy, with Texas ranking as the leading state in cattle production. Ranches are also essential to preserving wildlife habitats, maintaining the state’s rural character, and providing recreational opportunities.

In summary, while the exact number of strictly defined ranches in Texas is difficult to determine, it is estimated that there are tens of thousands of ranches across the state. These ranches vary in size and specialize in different activities, and they are an essential part of the state’s history, economy, and way of life.

Performance of the Current Texan Ranchland Real Estate Landscape

Before the lull of real estate activity due to the pandemic, property in the Dallas Fort Worth area was going for an average of $2,500 an acre.

In the hill country and the northeast Texas regions, farming or livestock spreads were listed for close to $6,000 per acre or more. Operations on these ranches include dairy cattle operations, beef, horse breeding, and training.

In Texas, small ranches (200 to 440 acres) make up about 80 per cent of the total ranch resource. Ranches for cattle operations take up more acreage than this, occupying larger family farms of 1,400 acres and above. Super-sized ranches in Texas, with square miles of pastureland, for instance, have about 2,000 acres and beyond.

There is an average of 505 acres in Texas per cattle operation since these operations occupy around 90 million acres in permanent pasture. Most of these ranches fall in the category of either large or significantly large. However, small cattle operations far outnumber the big and massive spreads.

Buying A Ranch in Texas: Easy Costs and Average Price

Texas is a productive place to buy a ranch, as other than the low taxes and stellar living conditions, you can spot affordable acreage for your farmland or ranch. When looking to buy a ranch in the lone star state, take your intended use for land as a primary consideration.

Demand for rural acreage, seeing as the metropolitan areas continue to mushroom, is only expected to rise. Although ranches in the coastal prairie or the south and north of Texas aren’t cheap, they are considered worthwhile real estate investments.