How Much Does 1 Acre of Land Cost in Arkansas?

The cost of one acre of land in Arkansas varies significantly, influenced by market forces and specific property characteristics. This article explores general price ranges, factors determining land value, regional differences, and additional purchase costs.

General Price Ranges and Market Overview

The average value of farm real estate in Arkansas, including land and structures, was estimated at $4,110 per acre in 2024, representing a 4.8% increase from the previous year. This average varies significantly based on land use. Irrigated cropland averaged $4,200 per acre in 2024, while non-irrigated cropland averaged $2,710 per acre.

Pastureland averaged $3,270 per acre in 2024. Quality cropland for staple crops like soybeans, cotton, and rice ranges from $2,500 to $4,000 per acre, influenced by soil quality, drainage, and location. Recreational lands, often with timber or water access for hunting, range from $1,500 to $3,000 per acre.

Commercial and residential land generally commands higher values than agricultural land due to development potential. Over the past two decades, Arkansas land has seen an average annual appreciation rate of 6.5%. Farmland in the Delta region can be acquired for around $6,000 per acre, about half the value of similar Midwest farmland while still offering 80% to 90% of the corn and soybean yields.

Factors Determining Land Value

Location is a primary determinant of land prices. Land closer to urban centers, amenities, and established infrastructure like roads and highways holds higher values. Proximity to industrial zones or metro areas can also significantly increase land valuation.

Zoning regulations dictate permissible land uses, whether residential, commercial, agricultural, or industrial. Land designated for commercial or residential development often has a higher value than agricultural land due to its greater profit potential. Physical characteristics, including topography, also influence cost; flat, cleared land is often more suitable and less costly for development than hilly or heavily wooded parcels.

Soil quality is important for agricultural land, directly impacting potential crop yields and value. Prime farmland, especially in the Delta region with its rich alluvial soils, commands higher prices. The availability of essential utilities like water, sewer, electricity, and broadband internet significantly enhances land value, as installing these services can be a substantial expense. Existing improvements on the land, such as structures, fencing, or wells, also contribute to its market price.

Geographic Price Differences in Arkansas

Land costs vary across Arkansas’s geographic regions. Northwest Arkansas is the most expensive, averaging around $8,500 per acre. This area experiences robust growth due to population increases, economic expansion, and major employers, leading to high appreciation rates.

Central Arkansas offers rural and urban environments, with land prices typically around $3,500 per acre. However, the median price can reach $14,000 near major population centers like Little Rock. This region features hills, forests, and rivers, with access to urban amenities.

The Delta region is characterized by fertile farmland, averaging $3,000 per acre. Its rich alluvial soil is ideal for agriculture, including rice, soybeans, and cotton, and it is also known for waterfowl hunting. Some Delta farmland can reach $6,000 per acre, particularly in northeastern parts with highly productive soils. Other areas, such as the Ouachita and Ozark Mountains, offer rural land with natural beauty, where prices can vary based on factors like the availability of electricity and city water.

Understanding Additional Costs and Purchase Process

Acquiring land in Arkansas involves additional financial considerations beyond the purchase price. Closing costs typically range from 3% to 5% of the purchase price. These costs commonly include fees for title searches, document filing, legal services for contract review, and recording the deed. Buyers should also anticipate property appraisal fees as part of the closing process.

Property taxes in Arkansas are based on the assessed value of the property, which is set at 20% of its appraised market value. Arkansas has a relatively low statewide average effective property tax rate, approximately 0.59%. Property taxes are due annually by October 15.

Survey costs can range broadly, from $200 to $800, but may be higher depending on the lot size, geographical location, and complexity of the survey. For larger parcels, such as those under 5 acres, boundary surveys can start at $1,150 or more, increasing to $1,950 or more for 5-10 acre parcels, and over $2,950 for parcels exceeding 10 acres. Environmental assessments may also be a part of the due diligence process to identify potential concerns.

Utility hookup costs can be a significant expense if services like water, sewer, or electricity are not already available on the property. Budgeting for utility development is an important step in the overall financial planning for land acquisition. The land purchase process generally involves identifying suitable properties, consulting with real estate professionals and attorneys, making an offer, and conducting due diligence including inspections and zoning verification. Finalizing the transaction requires a written contract with a legal description of the property, a title search, and the recording of a warranty deed at the county recorder’s office.