In Missouri, agricultural land covers more than 60% of the state’s total land area. The rest of the state is taken up by urban areas, forests, and grasslands. If you’re interested in buying some Missouri farmland, you may be wondering about the types of land available for sale in the state.
Some Common Types of Agricultural Land Available for Sale in Missouri:
Pastureland: Pastureland is the most common type of farmland in Missouri. It’s used for raising cattle, sheep, and other livestock.
Pastureland is typically a large tract of land covered in grass or other vegetation. The most common uses for pastureland are grazing livestock, growing hay, and cultivation of small grains such as oats. When seeking land for purchase or lease, consider the type of soil and topography of the property. Select a site that is suitable to your farming or livestock enterprise. For those looking for land to lease, contact your Missouri Farm Service Agency (FSA) office. They can help you choose the right property for your needs.
Ranchland: Ranchland is similar to pastureland, but it’s used for raising cattle and other livestock on a larger scale.
Ranchland typically has larger parcels of land, fences or other barriers to keep livestock contained, and often a dwelling or other buildings. It may be used for grazing or for growing hay or crops. There are many benefits to investing in ranchland, including that it is often less expensive than other types of farmland. Plus, it often has less regulation, which can make it easier to get started.
Cropland: Cropland is used to grow crops such as corn, wheat, soybeans, and cotton. Crops are grown on both large-scale farms and small-scale family farms.
Large-scale farms grow crops on large tracts of land, often thousands of acres. Small-scale family farms may grow crops on a few acres of land. In both cases, crops are grown in either fields or greenhouses, depending on the type of crop. Cropland is also used to grow hay, which is used to feed livestock such as cows, goats, and sheep.
Cropland is cultivated and tended by farmers. Farmers grow crops using various tools, including plows and tractors.
Farmland: Farmland is a general term that refers to any type of agricultural land that can be farmed or grazed by livestock. This includes pastureland, ranchland, cropland, and more.
Soil, Topography and Landscape Considerations When Buying Missouri Farmland:
Soil Type: Clay, Sand, and Loam are three major soil types available in Missouri. They all have unique characteristics that affect plant growth and produce. Clay is heavier and compacts easily, making it difficult to plant grass or other crops. Loam is a mix between sand and clay, giving it more moisture retention. The soil type in Missouri is mostly loam, which is a combination of sand, silt, and clay. Loam is considered to be the best type of soil for growing crops.
Topography: The topography in Missouri varies greatly from one region to another. Some areas are flat and others are hilly or mountainous. Most Missouri farmlands are arable, meaning that they’re capable of growing crops
Landscape: The landscape in Missouri varies greatly from one region to another. Some areas are flat and others are hilly or mountainous.
The state has a variety of ecosystems, from swamps and marshes to lakes and rivers. Missouri is home to a diverse range of wildlife, from ducks and deer to black bears and elk. Bird watchers can find habitat for cardinals, bluebirds, and other species.
How Much Does It Cost to Buy Farm or Agricultural Property in Missouri?
The price of farmland in Missouri varies greatly depending on the location and size of the property. A recent survey from MU’s Extension Office found that landowners who purchased Missouri property in 2021 paid more for land than buyers who purchased land in 2020. https://extension.missouri.edu/news/survey-finds-missouri-land-values-increased-across-the-board-in-2021-5458
There are many tax benefits to buying farmland in Missouri. These include:
Farmland is exempt from property taxes. This means that you will not have to pay any property taxes on your land. However, you will still have to pay taxes on any buildings or other improvements that you make to your land. You may also be required to pay a special assessment if a road or other public improvement is made near your land.
You can deduct the interest that you pay on your mortgage from your taxable income each year. This can save you thousands of dollars in taxes each year, depending on how much money you make and how much interest you pay on your mortgage each year.
You can also deduct some of the expenses that you incur when running your farm business from your taxable income each year, which can save you even more money in taxes each year. For example, if you buy a new tractor for $50,000 and use it for 10 years before selling it for $10,000, you can deduct the entire cost of the tractor in the year you bought it. However, if you buy a new tractor for $50,000 and plan to keep it for 10 years, you can only deduct 10% of the cost each year. This is known as depreciation.
You can purchase farmland through private sellers or through large-scale corporations like Monsanto or John Deere. There are many different options when it comes to purchasing farm land in Missouri, and you’ll want to make sure you know what type of property you’re looking for before setting up a meeting with a realtor.
Buying Versus Leasing Missouri Farmland: Which Is Better?
There are many benefits to buying farmland in Missouri, but there are also some benefits to leasing it. If you lease your land, you will not have to pay property taxes on it. However, if you buy your land, you will be able to deduct the interest that you pay on your mortgage from your taxable income each year. You can also deduct some of the expenses that you incur when running your farm business from your taxable income each year. For example, if you buy a new tractor for $50,000 and use it for 10 years before selling it for $10,000
If you do not plan on living on the land that you buy or lease for very long and want to sell it in a few years without having to pay capital gains taxes on any profit that you make from the sale of the land, then leasing is probably better than buying. If you plan on living on the land for many years and want to pass it down through generations of your family or sell it at a later date without having to pay capital gains taxes on any profit that you make from the sale of the land, then buying is probably better than leasing.
Buying Recreational Property in Missouri:
Missouri offers a wide variety of scenic landscapes, entertainment options, and historic attractions, making it an ideal state for active retirees and other individuals who enjoy spending time outdoors. Many property buyers are attracted to the Show Me State’s low cost of living, including its low property taxes, which are among the lowest in the country. Additionally, Missouri does not impose a state income tax, which is another significant benefit for residents and property buyers.
Missouri’s warm climate and low property taxes make real estate in the state very affordable. If you are interested in buying a vacation home or another type of recreational property in Missouri, speak to a reputation real estate agent who has experience with farm and agricultural properties, not just big-city residential property.
Additional Tips about Buying Missouri Farmland:
If you plan on raising livestock alongside your farm property, it’s a good idea to visit with a veterinarian before making any purchases. When visiting farms in Missouri that are home to livestock, it’s important to remember that many animals carry diseases and can infect others if not properly cared for.
It’s always a good idea to bring someone with you when visiting farms in Missouri—especially if you don’t know anyone locally! While most farmers are friendly and welcoming, it’s important to remember that you are entering their private property and should respect their privacy at all times.
If possible, visit during harvest season so that you can see firsthand how crops are grown and harvested on these types of properties.
When it comes to obtaining Missouri land, there are several different categories to consider. Your intended use will dictate which type best fits your interests. Whether you’re interested in hunting or farming, some research can go a long way towards ensuring that you find land you’ll be happy with. Thanks for reading!