2021’s Best States to Start a Farm or Ranch

father and daughter working in cornfield

Farming and ranching aren’t the most glamorous jobs — you’re up before sunrise tilling the soil and milking the cows, and you work 365 days a year. Despite the rigorous work schedule, agriculture is among the most rewarding and essential professions.

But where do you have the highest chance of successfully starting a Green Acres life? 

Ahead of Farmers Day, Oct. 12, LawnStarter compared the 50 states across 42 key metrics to rank 2021’s Best States to Start a Farm or Ranch. 

We looked for states with existing farm communities to indicate viability, good infrastructure, and a suitable climate. We also compared the states based on overhead and ROI potential.

See which states are best for getting your hands dirty below, followed by some highlights and lowlights. 

Table of Contents

  1. State Rankings
  2. Highlights and Lowlights
  3. Ask the Experts
  4. Methodology
  5. Why This Study Matters

State Rankings 

See how each state fared in our ranking:

OVERALL RANKStateOverall ScoreViability RankInfrastructure RankClimate RankEnvironmental Hazards RankPersonnel RankCosts RankROI Potential Rank
1Montana59.72974269415
2Kansas58.7851409122232
3North Dakota57.35223462101513
4Texas57.32164848242012
5Oklahoma57.0479412019633
6South Dakota56.366547572624
7Iowa56.0632281754520
8Kentucky55.07108828181718
9Colorado54.481625202125910
10Wyoming54.41181638727217
11Nebraska54.348445464616
12Arkansas54.26202723308104
13New Mexico53.171747301013311
14Oregon53.08232119294275
15Tennessee52.8811121344431334
16Idaho52.81282231152323
17Alabama52.372213263917722
18Missouri52.3413152919161837
19Georgia52.1229111733151614
20Minnesota51.93213433223321
21Washington51.89373044133242
22Louisiana50.84411821502887
23Mississippi50.394020393614129
24Wisconsin49.315173412213638
25Delaware49.01321024632356
26South Carolina48.89353394337530
27Virginia47.862537632391143
28Arizona47.832439162511398
29Ohio47.694491840354028
30West Virginia47.332642323141150
31Utah4739283347451423
32North Carolina46.983834535291927
33Illinois46.9714143534304826
34Florida46.563436342262819
35California45.8348194371501
36New York45.733462214492131
37Maryland45.6629322523343725
38Indiana45.1319441545313136
39Vermont44.82729278234149
40Hawaii44.38434511202941
41Michigan43.6844353616403040
42Nevada42.4336313749424435
43New Hampshire42.1142264924443844
44Pennsylvania41.8812501241334229
45Massachusetts39.944748727472545
46Maine39.5945431411383447
47New Jersey39.2531242438354948
48Connecticut38.0846401026464739
49Rhode Island37.5749381122504346
50Alaska36.1350415018482342
Infographic showing the best and worst states to start a farm

Highlights and Lowlights

Montana: Ahead of the Herd

The Big Sky State earns the top spot in our ranking of 2021’s Best States to Start a Farm or Ranch. With agriculture its biggest industry, Montana’s victory comes as little surprise. 

The state placed in the top 10 in five out of seven categories and No. 15 in ROI Potential. Montana trails only Wyoming in farm size, averaging a whopping 2,156 acres, and the average cost of an acre in the Treasure State is lowest in the U.S.

Although ranching is woven into the state’s cultural fabric, farming also contributes significantly to the state’s economy. Montana is a top supplier of beef, and it leads the nation’s production of organic certified wheat, dry peas, lentils, flax, and honey

If you want the best of both worlds, Montana hits the sweet spot.

Great Plains: Great for Agriculture

Nine of our top 10 states are in the Great Plains, including several in the Corn Belt. Those regional names alone give away these states’ suitable farming qualities.

Coming in at No. 2 is Kansas, while Texas clocks in at No. 4, Oklahoma at No. 5, and Iowa in seventh place. Both Dakotas made it, too, at Nos. 3 and 6. Colorado (No. 9) and Wyoming (No. 10) round out the Plains states at the top. 

But how specifically did this broad, sweeping landscape dominate the top of our ranking? Most of these states, such as Kansas, Oklahoma, and Texas, boast cheap land, large established farming communities for support, and highly developed infrastructure. 

Move to the Great Plains, and you’ll be chasing cattle in no time.

The Last Frontier: Last in Farming

Alaska not only ranked at the very bottom of our ranking of top agricultural states, but it also finished last in two out of seven categories, Viability and Climate; third to last in Personnel; and in the worst 10 of Infrastructure and ROI Potential.

These results are hardly a shock. Although Alaska is the biggest state by land area, less than a quarter of a percent of the state’s 365 million acres is available for farming. Much of this can be attributed to the state’s generally unsuitable farming climate, brief growing season, and infertile soils. 

In other words, you won’t grow many crops here — but you can grow some of the world’s biggest. Because of Alaska’s long daylight hours during summer, some vegetables grow to monstrous sizes: a 19-pound carrot, 76-pound rutabaga, and 172-pound cabbage.

Ask The Experts

Starting a farm or ranch can be challenging, especially if you have no previous experience.

To help you navigate the agricultural business landscape, we reached out to a panel of experts for wisdom. See what they had to say below.

  1. What are the top three reasons to start a farm or ranch today?
  2. What type of person is best suited to a career in agriculture?
  3. What will be the three biggest challenges to new farmers and ranchers over the next 3-5 years?
  4. Over the long-term, do you see more opportunity in direct-to-consumer farming or industrial supply-chain farming, which has not fared as well during the pandemic? Please explain.
  5. What’s your single most important tip for someone who wants to start a farm or ranch?
Chengyan Yue
Professor, Department of Applied Economics
Paul Mitchell
Professor, College of Agricultural and Life Sciences
Dava Hayden, M.S.
Horticulturist and Instructor
Chengyan Yue
Professor, Department of Applied Economics
University of Minnesota

What are the top three reasons to start a farm or ranch today?

There is an ever-increasing demand for locally-grown produce.

In 2019, about 82% of the total population in the United States lived in cities and urban areas and it is predicted this percentage will keep increasing. Urbanization leads to a declining ratio of farmers to food consumers, which means there is a need for more farmers or to have existing farmers increase their production to meet the increasing demand.

One-third of US farmers are close to retirement age, and there is a need for farmers from the younger generation.

What type of person is best suited to a career in agriculture?

A person who likes to be close to nature, stay outside, get their hands dirty, and wants to be an entrepreneur,

What will be the three biggest challenges for new farmers and ranchers over the next 3-5 years?

Finding a customer base: It’s always challenging to find customers and target markets when starting a new business.

Competition from large retailers: The competition is intense because large-scale food suppliers have many advantages in terms of competitive pricing and efficient distribution.

Understanding consumers’ needs: consumers’ needs and wants are changing due to many uncertainties and the changing population structure, so it is challenging but very important to understand the consumers’ needs.

Over the long-term, do you see more opportunity in direct-to-consumer farming or industrial supply-chain farming, which has not fared as well during the pandemic? Please explain.

I would say both will have opportunities because consumers are not the same. Some consumers are price sensitive, whereas others pay more attention to product origin, local, organic, etc. Both direct-to-consumer farming and industrial supply-chain farming will find their segment of consumers.

What’s your single most important tip for someone who wants to start a farm or ranch?

Love farming. Loving what you do will go a long way.

Paul Mitchell
Professor, College of Agricultural and Life Sciences
University of Wisconsin-Madison

What are the top three reasons to start a farm or ranch today?

Because you have the passion for it, it’s not something you kind of just do, even if it’s only part-time, you need passion for it.

What type of person is best suited to a career in agriculture?

Hard worker, responsible, the person who goes the extra mile and does not need the spotlight for doing good, hard work.

What will be the three biggest challenges for new farmers and ranchers over the next 3-5 years?

Price and market variability as we move into the post-covid economy.  We are all still uncertain about how much consumer food demand has changed as a result of the pandemic.

Over the long-term, do you see more opportunity in direct-to-consumer farming or industrial supply-chain farming, which has not fared as well during the pandemic? Please explain.

Yes, food has moved into delivery just like much of retail, with more online shopping, home delivery, or curbside pick up.  Small local foods have followed this trend and I expect consumers to stick with the buying channel even after the pandemic ends. The shopping and online technology is there. 

The costly part is the shipping/delivery, the last mile.  Transportation and logistics are all about efficiency, but that is where the small farmers and processors (meat, cheese processors) at the local level will struggle – driving around in your own van is costly compared to a large semi-trailer shipping food from CA to WI. 

What’s your single most important tip for someone who wants to start a farm or ranch?

Try not to be too emotional about decision making, but go with what works and keeps your costs down.  Yes, a new hay mower will look great and make you feel great, but a used one is likely a much better deal. 

Keep your costs down and make rational decisions – most of farming is not about how things look or even how they work, but how much they cost to get the job done. Never underestimate the capacity of agriculture to oversupply any market and drive down prices –you will need to be able to survive low price years to make money in high price years.

Dava Hayden, M.S.
Horticulturist and Instructor
Murray State University

What are the top three reasons to start a farm or ranch today?

Consumer demand is pushing for locally grown agricultural commodities. 

Global awareness is encouraging everyone to reduce carbon emissions; buy local and ship local. 

Mega-greenhouse structures are helping meet the need to grow more on less ground while being very environmentally friendly

What type of person is best suited to a career in agriculture?

Entrepreneurs willing to accept challenges and problem-solving thinkers are best suited for the greenhouse and green industry.

What will be the three biggest challenges for new farmers and ranchers over the next 3-5 years?

The greatest challenge growers are going to have is labor; finding quality laborers and being able to afford them while keeping the cost of production down.  

I suspect government regulations will soon be more challenging for growers. 

Finally, I suspect the cost of materials for products containing petroleum will increase significantly.  We have seen prices increase and occasionally drop over the years, but it trends with the costs of petroleum. 

Over the long-term, do you see more opportunity in direct-to-consumer farming or industrial supply-chain farming, which has not fared as well during the pandemic? Please explain.

I see community supported agriculture growing in popularity. Contract growing is great for farmers. They are guaranteed sales that usually require a deposit and that allows growers to manage cash flow a little easier.  

What’s your single most important tip for someone who wants to start a farm or ranch?

Try to get start-up money with forgivable loans.  Do your homework ahead of time to determine where your product will be sold.  Prepare a firm business plan.  Build a business, do not start an empire overnight.  

Methodology

We ranked the 50 U.S. states (excluding the District of Columbia) from best (No. 1) to worst (No. 50) based on their overall scores (out of 100 possible points), averaged across all the weighted metrics listed below.

MetricWeightingMin. ValueMax. ValueBest
Viability
Farmland Area per State Area30.23%91.32%Max. Value
Increase in Farmland Area Over Past Year2-5000Max. Value
Number of Farms per State Area30.001.9Max. Value
Increase in Number of Farms in Past Year2-500200Max. Value
Share of Family-Owned Farms393%98%Max. Value
Average Farm Acreage355 acres2417 acresMax. Value
Total Cropland Area225 acres29215 acresMax. Value
Total Grassland Pasture Area27.19 acres104,603.14 acresMax. Value
Number of USDA-Approved Slaughter and Rendering Establishments22.00104.00Max. Value
CSAs (Community Supported Agriculture) per 100,000 Residents10.032.40Max. Value
Population Density in Rural Areas10.4 residents per sq. mi.154 residents per sq. mi.Min. Value
Infrastructure
Land Used for Rural Transportation211.09 acres1791.79 acresMax. Value
Road Quality (Share of Major Roads in Poor or Mediocre Condition)214%77%Min. Value
Water Quality (Total Number of Violations in Past Year)2103,771Min. Value
Air Quality (Total Number of Violations in Past Year)21313Min. Value
Phone Coverage24.30%100.00%Max. Value
Potential for Solar Power (Index)10.671.19Max. Value
Potential for Wind Power (Index)1192.361.34MMax. Value
Share of Electricity from Renewable Sources12.52%99.82%Max. Value
Share of Farms with Internet Access250%97%Max. Value
Rural Health Clinics per 1,000 Square Miles20.086.88Max. Value
Number of Critical Access Hospitals2388Max. Value
Climate
Average Amount of Sunshine239.33%82%Max. Value
Average Monthly Precipitation (in Inches)150.00170.50Max. Value
Yearly Average Number of Very Hot Days (90 Degrees F or Higher)13.50103.17Min. Value
Yearly Average Number of Very Cold Days (32 Degrees F or Lower)10.00204.50Min. Value
Environmental Hazards
Toxic Chemicals Release (per Square Mile)139.9 pounds3386.26 poundsMin. Value
Risk-Screening Environmental Indicator Score133379.44MMin. Value
Natural Hazards Index19.2115.78Min. Value
Personnel
Farm Workers per 100,000 Residents26.801,461.20Max. Value
Costs
Average Per-Acre Cost of Farmland3$1,050$14,800Min. Value
Yearly Average Increase in Per-Acre Farmland Price2-$5.00$557.50Min. Value
Per-Acre Farmland Rental Rate2$35$331Min. Value
Yearly Average Increase in Per-Acre Farmland Rental Rate1-$8.75$41.50Min. Value
Property Taxes30.30%2.21%Min. Value
Average Per-Farm Annual Production Expenses2$28,420$535,669Min. Value
Cost of Living Index186.10192.90Min. Value
ROI Potential
Annual Farmland Returns30.04%8.80%Max. Value
Average Per-Farm Annual Income2$7,905$66,671Max. Value
Average Per-Farm Net Cash Annual Income2$2,519$277,316Max. Value
Average Per-Farm Annual Receipts from Federal Programs2$4,609$38,624Max. Value
Total Annual Market Value of Agricultural Products Sold1$57.99M$45.15BMax. Value

Sources: AcreTrader, National Center for Disaster Preparedness, National Oceanic and Atmospheric Administration, National Transportation Research Nonprofit (TRIP), Nebraska Department of Environment & Energy, Rural Health Information Hub, Tax Foundation, U.S. Bureau of Labor Statistics, U.S. Census Bureau, U.S. Department of Agriculture, U.S. Department of Energy, U.S. Energy Information Administration, U.S. Environmental Protection Agency, WhistleOut and World Population Review

Why This Study Matters

The pandemic made clear that farmers and ranchers are more vital than ever to maintaining our food supply. When it was hard to find toilet paper, there were always fruits, vegetables, and meat for lunch and dinner.

But like many other sectors of the economy, the agriculture industry currently suffers from a massive labor shortage. The consequences could be dire — we need more children of the corn, as well as more citrus growers, calf ropers, and steer herders.

Besides the opportunity to fill this critical employment gap, the financial incentive to join the agriculture industry is stronger than ever: You can make green by growing green crops — this includes marijuana in states where that’s legal.

At the start of 2021, farmers were forecasted to see profits for the first time in many years. Profits from farm exports, in particular, are expected to hit a new record in 2022 after an already record-setting 2021.

So if you’re looking for a career transition, buy the farm or saddle up your horses — the time to enter the agriculture market is now.

Main Photo Credit: Budimir Jevtic | Shutterstock

Richie Bernardo

Richie Bernardo

Richie Bernardo is a managing editor who previously wrote about personal finance and immigration. Philippine-born, Kansas City-bred, and barbecue-fed, Richie enjoys baking, deal hunting, and binging “Ancient Aliens.”