Investing in US farmland from the UK

Exploring the idea of investing in farmland in the US, from the UK? You may be an experienced UK investor looking for a new challenge overseas, or perhaps have a dream to live, work or run a farming business over in the States.

Whatever your plans and ambitions, you’ll need to do some homework before you can start searching for land to buy.

We’re here to help, with a useful guide to US farmland investment covering all the essentials you need to know. This includes the rules on foreigners buying farmland in the US, average prices for land across the state, and info on how to invest in US farmland.

We can’t give you investment advice, but we can give you helpful information as you take your first steps towards buying land in the US.

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Can foreigners buy farmland in the US?

Generally speaking, yes - foreign citizens can buy farmland in the United States.

There are no federal restrictions preventing non-US citizens from buying a plot of agricultural land in the US. Buyers simply need to report the purchase to the United States Department of Agriculture (USDA). This is the department responsible for tracking and monitoring foreign ownership of US land, under the Agricultural Foreign Investment Disclosure Act of 1978 (AFIDA).¹

If you don’t report the transaction to the USDA, you could face a penalty of up to 25% of the fair market value of the land.¹

But while there are no national restrictions on foreigners buying farmland in the US, there may be state-level rules to be aware of. Approximately half of the country’s 50 states have their own laws which restrict foreign ownership of private land.² This means you’ll need to do your research depending on the state you’re looking to buy land in.

As for how much farmland is actually in the USA, figures for 2022 put it at approximately 43.4 million acres³ - although only a fraction of this is owned by a non-US citizen or company.

Is the investment in US farmland worth it?

If you’re still deciding whether or not to invest in US farmland, it could be worth weighing up some of the potential benefits and pitfalls.

Pros:

• US farmland has historically delivered strong returns (especially compared to other assets like stocks)
• Farmland values tend to appreciate over time, and it can also act as a hedge against inflation
• It’s a good way to diversify your investment portfolio
• Farmland can provide you with a steady income from production or rent if managed properly
• The US can be the ideal place to start or expand your own farming business, especially if you can secure land at the right price.

Cons:

• You’ll need to make a large initial investment, so you’ll need to have the capital ready
• Farmland ownership can be complex and often involves a significant time commitment. You may need to get a green card or US visa to be able to actively manage your investment in the US
• Income from farmland can be unpredictable
• There’s always a risk of loss, like with all investments
• There are restrictions on foreign ownership of farmland in some states, so you may not be able to buy exactly where you want to.

3 ways to invest in US farmland from the UK: How to get started

There are a few different ways you can invest in US farmland from the UK, starting with simply buying a plot of land.

However, you can also benefit from a US agricultural investment in other ways, such as buying agriculture stocks, using a farmland investment marketplace to ‘pool’ investments with others, or investing in farmland asset management - where you get the benefits of owning farmland, without all the work and administration.

Let’s take a look at each of these routes in a little more detail, including steps to get started.

1: Buy farmland directly

The most common route for investing in US farmland is simply to buy a plot of land. You may want an undeveloped or vacant piece of land, with plans to develop it or set up a new farming business from scratch. This would let you earn an income from your chosen business, whether from production or through renting it out to a tenant.

Alternatively, you may be looking for land which already has a tenant, so you can benefit from the rental income as the owner of the land. This is known as a sale-leaseback transaction, where you buy the farm and lease it back to the farmer.

To get started with buying land, you’ll need to:

• Investigate your options, research the market and get local advice
• Check whether there are any state-level restrictions to foreign ownership of farmland
• Get your finances in order, including looking into getting a mortgage
• Search for land to buy
• Do your due diligence - this means getting a valuation on the land, data on its income, yield, tenants and ownerships.
• Seek legal advice - you’ll need to work with a real estate attorney specialising in farmland. They can handle the paperwork, contract negotiations, searches and checks, as well as ensuring the transaction is completed smoothly and legally
• Plan out how you’ll transfer the funds for the deposit and final balance between the UK and overseas, along with any other costs.

2: Buy agriculture stocks

If you don’t want to actually buy land yourself, you can still invest in US farmland via the stock market. You can buy shares of agriculture companies, which will enable you to earn returns related to the productivity and value of their farmland.

You can also look into using farmland investment platforms or marketplaces. A form of crowdfunding, these platforms let you pool your funds with those of other investors to buy shares in farmland, property and farming companies.

To get started with either of these options, you’ll need to:

• Get your finances in place
• Do plenty of research into the past and current performance of the agriculture stocks you’re interested in
• Seek professional investment advice to help you choose the right farmland investments to suit your goals.

3: Invest in farmland asset management

A third option is to invest in what is known as farmland asset management. This is where the administration of farms and farmland investment is outsourced to a third party, handling everything from taxes to returns. You get the best benefits of owning farmland, but without the hard work of finding, buying and managing it yourself.

To get started with this method, you’ll need to seek investment advice and do plenty of research into farmland asset management companies. It’s especially important to check their fees carefully, as there are likely to be high management charges.

How much does 1 acre of farmland cost in the US?

Now, let’s take a look at the average price per acre of farmland in different parts of the US. This can help you work out where the most affordable plots can be found, and help you get the best value for money.

Where is the cheapest farmland in the US?

Some of the cheapest farmland in the US can be found in Montana, where the average price per acre is just $922 USD. This is a bargain compared to some states such as New Jersey and California, where average prices per acre are $14,163 and $11,014 respectively.⁴

You can also find affordable farmland in:⁴

• Nevada - $956 per acre on average
• Wyoming - $1,370 per acre on average
• Oklahoma - $1,422 per acre on average.

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**Capital at risk. In the UK, Interest and Stocks are provided by Wise Assets — this is the trading name of Wise Assets UK Ltd, a subsidiary of Wise. Wise Assets UK Ltd is authorised as an investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice. You can find more information about the funds on our website.

Sources used:

Sources last checked on date: 13-Jun-2025