The USDA just released their annual report of US farmland values, so we wanted to see how Uruguay farmland prices compare to one of the world’s largest producers and exporters of agricultural commodities.
The USDA’s Land Values 2014 Summary breaks down the US farmland market into five main growing regions: Appalachian, Corn Belt, Lake, Northeast and Northern Plains. (Note: We are using the USDA’s 2013 numbers in order to make an apples-to-apples comparison with Uruguay which released the country’s 2013 Land Price report in March.)
The average price of US and Uruguay farmland are listed per acre and per hectare in USD:
- US Corn Belt: $5,880 per acre, $14,529 per hectare
- US Northeast: $4,850 per acre, $11,984 per hectare
- US Lake Region: $4,240 per acre, $10,477 per hectare
- US Appalachian: $3,610 per acre, $8,920 per hectare
- US Northern Plains: $1,960 per acre, $4,843 per hectare
- Uruguay: $1,424 per acre, $3,519 per hectare
Considering the Uruguay farmland price number takes into account a nationwide average encompassing land in 19 different departments, we also compared the average land prices in the Top 3 most expensive growing regions in both the US and Uruguay. They are as follows:
- United States #1 – Corn Belt: $5,880 per acre, $14,529 per hectare
- Uruguay #1 – Soriano: $2,567 per acre, $6,565 per hectare
- United States #2 – Northeast: $4,850 per acre, $11,984 per hectare
- Uruguay #2 – Colonia: $2,460 per acre, $6,079 per hectare
- United States #3 – Lake Region: $4,240 per acre, $10,477 per hectare
- Uruguay #3 – San Jose: $2,418 per acre, $5,974 per hectare
Last year, 1,868 farms sold in Uruguay with a total surface area of 371,000 hectares or an average farm size of 199 hectares (490 acres). Of the 1,868 farms, 761 (40%) sold at a price greater than $4,000 per hectare ($1,618 per acre) and 145 (7%) sold at a price above $10,000 per hectare ($4,046 per acre).
For more information about Uruguay agribusiness investments visit FarmsUY or complete the form below.