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?
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.
What’s the Average Price of a Ranch in Texas?
Texas is vast and diverse, land-wise and population-wise. The state is classified into seven unique regions, ranging from seal 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|
|Five||Brazos Bottom and the Gulf Coast||$10,200|
|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.
What Factors Impact the Price of Ranchland in Texas?
Over the past decade, ranch prices in Texas have continued on a moderate incline. Due to the diverseness 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 favor 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 on;
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 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.
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% 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 the massive spreads.
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.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.