Just as your goals and preferences for owning farmland are unique, so are the details of a property’s location, site history, land improvements and other characteristics.
The following farmland evaluation checklist highlights some of the key factors and questions to consider as you search for farmland for sale and how to evaluate a property that meets your needs.
Identify Land Ownership Goals
The path to successful land ownership starts with identifying your short- and long-term goals for the property. Completing this step will help you determine the type of land you need and your land management options. Consider the following questions:
- Are you a farmer or rancher looking to expand your current operation?
- Are you looking for a property that can be used for recreational purposes?
- Are you planning to purchase the land purely as an investment?
- Will you be responsible for farming the land?
- Will the land be farmed by a tenant?
- Do you plan to negotiate a cash rent or crop share agreement?
- Will the land be custom farmed?
Review Online Records
From property taxes to spatial and geographic data, there is a variety of information you can access through online land records. Below is a list of key resources and corresponding questions to guide you in your searches.
Local County Assessor’s Website:
- What is the property’s current assessed value?
- How does the assessor classify the acres (crop acres, pasture acres, waste acres, etc.)?
- What are the property’s historic real estate taxes?
Natural Resource District Website:
- What is the annual rain fall in the area?
Google Earth Aerial Images:
- Can you see access to the property from a public road?
- Is there a drainage ditch that cuts through the property that you can’t see from the road?
- Are there any obstacles on the land that would prevent a pivot from making a full circle?
Realtor & Auctioneer Websites:
- Are there any comparable properties that have sold recently?
- What are the price trends and land values?
- What are the average cash rental rates?
Contact Local Experts
Local experts know the market, comparable sales and history of area properties. The seller, realtor, auctioneer or attorney representing the property being sold should be able to provide you with additional details such as:
- Tillable acres
- Map of soil types and ratings
- Soil fertility
- Water and mineral rights
- Easements to adjoining property such as driveways, railroads or buried natural gas lines
- Historical yield information
- Tile and field drainage maps
It’s also a good idea to investigate what improvements exist on the property and what condition they are in.
For cropland with irrigation:
- How old is the well?
- Has the pump ever been pulled?
- Is the pivot owned by the seller or current tenant?
- What is the condition of the pivot?
- Is the power unit diesel, natural gas, or electric?
- Is there canal water nearby?
- What is the annual fee?
For pasture:
- What are the conditions of the fence?
- Is there any cross fencing?
- What is the water source (stock ponds, windmills, solar well) and what condition are they in?
- Are there any catch-pens or corrals on the tract?
- What was the stocking rate of the previous tenant?
For properties with outbuildings:
- Are you purchasing these improvements “as-is”?
- Does an inspection need to be completed before moving forward?
- What will it cost to insure these improvements?
- Do these improvements allow for another source of income?
Each year, FCSAmerica compiles sales records and, twice a year, appraises benchmark farms spread across our four states to publish the longest running and most comprehensive land values report in the region. Contact your local office to learn more.
Purchasing farmland requires a thorough assessment of the factors that give the property its value and determine whether the purchase is a worthy investment. No two tracts of land are alike, so do your homework ahead of time and be prepared to ask questions.
