In this article, we will discuss the cheapest agricultural land prices by country. If you want to skip our discussion on the agriculture industry, you can go directly to the Agricultural Land Prices by Country: 5 Cheapest Places.
According to the Business Research Company, the global agriculture market size grew from $12.25 trillion in 2022 to $13.39 trillion in 2023, reflecting a CAGR of 9.4%. Additionally, the international market for agricultural products is expected to further expand at a CAGR of 9.1% to reach a value of approximately $19 trillion by 2027. Looking at the global agriculture industry market size for the year 2022, Asia-Pacific was reported to be the largest agricultural market. Following closely, North America was the second-largest agricultural market in 2022. North America is expected to grow at a CAGR of 10.37% to reach $15.79 trillion by 2030. These regions also include countries offering agricultural land to foreigners, such as Canada.
The global agriculture sector is undergoing a shift towards adopting more sustainable practices. The rising carbon emissions and shrinking arable land are making it necessary to shift towards sustainable farming practices to maintain soil health. The sustainable agriculture market is anticipated to reach a substantial market value of $31.35 billion by 2031, reflecting a robust growth rate of 10.17% during the forecast period of 2023-2031. A number of notable players are operating in the sustainable agriculture market, such as Nutrien Ltd. (NYSE:NTR) and CNH Industrial N.V. (NYSE:CNHI). CNH Industrial N.V. (NYSE:CNHI), an agriculture and construction company, has been experiencing significant expansion due to its commitment to sustainable agricultural practices. The company recorded a 31% increase in its revenue to $6.9 billion in 2022, with $5.37 billion being contributed from agricultural sales. CNH Industrial's approach to sustainability includes the introduction of a methane-powered tractor, which is cost-effective and has substantially cleaner emissions compared to traditional gas or diesel engines. Additionally, the company also released a prototype of a light-duty electric tractor at the end of 2022. CNH Industrial N.V. (NYSE:CNHI) continues to grow due to investing in artificial intelligence, automation, and circular farming concepts. You can read more about the Top 20 AI and Robotics Companies Transforming the Agriculture Sector here.
Another major player in the market is Corteva, Inc. (NYSE:CTVA), a US-based agricultural and seed company that ranks prominently among thebest agricultural stocks. Currently, Corteva, Inc. (NYSE:CTVA) boasts a market capitalization of $36 billion. While Corteva has experienced a 13% decline in its stock value this year and a 10% decline in the previous year, this downturn has made the stock more appealing, as it is now trading at a lower price in comparison to its book value when compared to similar companies in the industry. Furthermore, Corteva, Inc. (NYSE:CTVA) maintains a strong balance sheet, with analysts viewing it as a solid buy with a target price of $69.85, representing a 37% upside potential from the closing price as of September 20.
Here's what Oakmark Funds said about Corteva, Inc. (NYSE:CTVA) in its Q3 2023 investor letter:
“Corteva, Inc. (NYSE:CTVA) is a leading provider of seed and crop protection chemicals. We believe the seed and crop protection markets have sizeable barriers to entry due to the duration and magnitude of investment required to compete. Both industries require constant innovation: Farmers expect seed yield improvement each year while nature develops immunity to crop protection chemicals over time. As a result, advantages accrue to the largest players with the most R&D resources. Within this context, we believe Corteva is very well positioned. The company has scale, well-recognized brands, a loyal customer base, and a promising R&D pipeline. In addition, we see idiosyncratic opportunities for Corteva to improve its profitability over time, and we believe the current management team is executing well against this opportunity. More recently, the stock has been pressured by near-term headwinds related to inventory destocking and declining crop prices. We see this weakness as an opportunity to invest in a high-quality and defensible business at a discount to both its own historical trading multiple and private market transactions.”
Agricultural Land Prices by Country: 20 Cheapest Places
To shortlist the 20 countries with the cheapest agricultural land, we referred to reputable sources like the Global Farmland Index, the Nation Master, and other research articles. We focused on data from the most recent year available, which was 2019. To ensure consistency, we used market currency conversion rates to standardize the average land prices across different regions. Let's begin our list of the cheapest agriculturalland per hectare in the world.
Agricultural Land Prices by Country: 20 Cheapest Places
20. Poland
Price per hectare: $12,237
Poland imposes certain restrictions on foreign property ownership. The country’s laws require potential purchasers to be residents for five years to buy agricultural land. Additionally, to limit large-scale land accumulation by a single party, the country has implemented a law that allows purchasers to own no more than 300 hectares.
19. United States
Price per hectare: $10,131
In the United States, there are no legal restrictions on foreign property ownership as long as foreign investors complete the documentation process correctly. Details of ownership must be shared with the United States Department of Agriculture. Additionally, farmland owners in the States enjoy reduced property taxes. These reductions are based on the concept of assigning a 'farm-use value' to the land rather than its market value. This law applies to inheritance farmland transfers as well.
18. France
Price per hectare: $7,302
According to laws in France, an authority known as SAFER has the primary right to obtain any land being sold, granting it priority over potential buyers. Additionally, France offers reduced inheritance taxes on farmland with the aim of encouraging land ownership within the agricultural sector.
17. Tunisia
Price per hectare: $6,900
Agriculture plays a significant role in Tunisia's economy, employing about 16% of the country's workforce and contributing to 12% of its GDP. The sector exhibits steady growth at a rate of 2% annually, reflecting its importance to the nation's economic stability.
16. Australia
Price per hectare: $6,092
Australia employs a regulatory framework for foreign ownership that considers both the type of buyer and the land's value. Different rules and restrictions apply depending on these factors. Australian laws prohibit foreign owners from buying land within 30 days of it going on sale, thus favoring local buyers. Currently, almost 13.8% of the land is under overseas ownership.
15. Canada
Price per hectare: $6,079
Canada's regulations on foreign land ownership can be complex, with each province having its own set of rules. In most of the provinces, foreign owners are not allowed to buy more than 40 acres of land. However, British Columbia and Ontario are exclusive of these rules, where there are no restrictions on foreign ownership of farmland.
14. Romania
Price per hectare: $6,079
Romania’s land ownership rules favor local interests greatly. When land goes for sale in Romania, it's first offered to co-owners, then to individuals leasing the land, followed by neighboring landowners, and finally, the Romanian government. Only after this process is it open to foreign owners, provided that they have been residents of the country for at least 3 years.
13. Argentina
Price per hectare: $5,558
Argentina had more restrictions on foreign ownership previously, with rules restricting foreign investors from owning more than 1000 hectares of land. However, this restriction was removed in 2016. Currently, 5.6% of Argentina's land is owned by foreign investors, and the primary requirement for ownership is approval from the National Land Registry for rural land.
12. Hungary
Price per hectare: 5,511
Hungary enforces stringent regulations regarding land ownership, particularly in the agricultural sector. Non-European Union (EU) citizens are generally prohibited from owning agricultural land in the country. Furthermore, the country also has strict regulations for local buyers, limiting land ownership to 300 hectares.
11. Western Slovakia
Price per hectare: $4,602
Slovakia covers a land area of 4,903,407 hectares, with agricultural land accounting for approximately 48.52% of this total area as of 2018. Slovakia previously had a strict policy regarding foreign ownership of its agricultural land. However, these regulations were eased down by the introduction of the reciprocity principle. Foreign investors can own agricultural land in Western Slovakia only if their home country permits agricultural land ownership for Slovakian residents as well.
10. Bulgaria
Price per hectare: $4,399
Bulgaria’s laws prohibit foreign ownership of its agricultural lands, with a few exceptions for EU citizens. However, foreign individuals can inherit farmland following rules set by the Bulgarian authorities.
9. Brazil
Price per hectare: $4,183
Brazil implements strict rules to control foreign ownership and protect local interests. Foreign individuals need the approval of federal agencies if they wish to own agricultural land in Brazil. The Ministry of Agriculture conducts an assessment to evaluate the impact of the sale on the agricultural sector. Foreign ownership is generally capped at less than 25% of the total municipal area. In contrast, local owners face a less restrictive limit, with a maximum of 40% ownership within a municipality.
8. Lithuania
Price per hectare: $4,183
Lithuania prohibits foreign ownership of its agricultural land. This restriction is in place to maintain control over its agricultural assets and safeguard the interests of local farmers and the country's agricultural sector. While foreign individuals or entities may be able to acquire other types of real estate in Lithuania, agricultural land remains off-limits to foreign ownership.
7. Latvia
Price per hectare: $4,144
Previously, Latvia’s laws only allowed EU citizens to own agricultural lands apart from local owners. However, this restriction was lifted in 2011. Foreign individuals are now required to speak Latvian B2 level to be able to purchase farmland.
6. Estonia
Price per hectare: $3,656
To own agricultural land in Estonia, individuals must seek approval from the county governor. For legal entities to be eligible for approval, they need to be actively engaged in agricultural production within Estonia for a minimum of one year and should have a registered branch in the Estonian commercial register.
Companies like Nutrien Ltd. (NYSE:NTR), CNH Industrial N.V. (NYSE:CNHI), and Corteva, Inc. (NYSE:CTVA) are among the notable companies operating in the agricultural sector.
