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Buying Farmland Steps

Buying Farmland

Buying Farmland

Buying farmland is much like buying any other type of real estate – the devil is in the details.

But whereas buying is a house is a fairly straightforward transaction, buying farmland comes with several unique considerations.

If you’re considering buying farmland, wherever it might happen to be, the following tips will help you ensure you get what you’re looking for.

Failing To Plan Is Planning To Fail
This sage quote from Alan Lakein is at the key of ensuring a successful buying experience.

Planning should be the first step in your journey of buying farmland and will keep you on track when inevitable obstacles occur.

Spend time thinking of all the elements a property must have to help cut down on the volume of real estate you’ll be considering.

Ideas to help get you started include:

● Size
● Production capabilities
● Water sources
● Local zoning laws and ordinances that may prohibit certain types of farming

What Financing Do You Need?
It’s very important when you start to consider buying farmland that you be very realistic in your evaluation of what is likely to happen with the market. 2013 was a very good year, but the general consensus is that those high prices won’t hold, and even though future prices might be lower, it’s hard to tell how fast that will happen.

Hobby farms are becoming increasingly popular over the past few years. These farms produce crops and often include livestock on a much smaller scale than commercial farms.

If you’re paying with cash, it’s relatively easy to shop for farmland.

You just compare what the sale price is compared to what you have in hand, and if the land meets your list of criteria established in the planning phase, make an offer.

Otherwise, if you want the help of a banker or other lending agent, you might be up against a different issue.

He might be an expert when it comes to helping you plan the purchase of a home, a car, or a business, but what does he know about lending for farmland?

It’s important that you get your advice from someone who’s knowledgeable in the area. Many rural locations will have banks that specialise in agricultural loans. Take advantage of these specialized banks and you may be surprised how helpful they can be.

Soil Type & Drainage
An often overlooked, but essential part of the farmland buying process. After all, the best plans in the world won’t matter if your crops don’t grow because your soil is no good.

It’s important to know everything you can find out about a piece of land before you buy it.

If a lab report comes back that says it is seriously deficient in certain nutrients, it will cost you more money to get it up to speed for planting or other uses.

It’s also important to determine what of a total piece of property is tillable and what isn’t.

Determining what land on the property is currently being planted and what is reclaimable makes a difference in how much is ready when you buy it. When you buy a home, you hire a home inspector to ensure the structure is sound and there aren’t any issues beneath the surface.

The same concept applies to buying farmland.

Specialized agriculture inspectors can be hired to test soil conditions, purity of water sources, and identify potential issues.

Understand What’s Included
When there are as many elements to consider as there are with farmland, be sure that it is clear what you are buying in the deal and get it in writing.

The items that are easily questionable include gates, panels, fences, feeders and much more.

Realtors can be of priceless help when buying any real estate, but in the case of buying farmland, a knowledgeable and experienced realtor can be worth their weight in gold.

Although the realtor works for the seller, it’s in his or her best interests to help facilitate the sale from both ends, which means being ready to talk both of you closer together when negotiations get serious.

This kind of help makes the deal better for everyone involved.

Buying Farmland Steps photos

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Buying Farmland for agriculture

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Buying Farmland Steps article and photos

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