Real Estate & Appraisal Services Category Guide

Agricultural Real Estate

Land is the foundation of dairy operations—whether owned or leased, farmland represents significant value and long-term commitment. Agricultural real estate transactions have unique characteristics that require specialized expertise beyond residential or commercial real estate.

Types of Transactions

Purchase and Sale

• Operating farms with facilities
• Bare land for expansion
• Investment farmland
• Farm with development potential

Leasing

• Cash rent agreements
• Crop share arrangements
• Pasture leases
• Long-term with option to purchase

Conservation Easements

Permanent restrictions protecting agricultural use while providing tax benefits.

Finding Agricultural Properties

Farm Real Estate Brokers

Agents specializing in farm and ranch properties understand agricultural values, due diligence needs, and farm buyer requirements.

National Land Companies

Companies like Farmers National, Hertz, and United Country specialize in agricultural properties.

Local Connections

Many farm sales happen through local networks before reaching the open market.

Valuation Factors

• Productive capacity and soil quality
• Water resources and irrigation
• Improvements and facilities
• Location and access
• Development potential
• Comparable sales

Due Diligence

• Title search and survey
• Environmental assessment
• Soil testing and maps
• Water rights verification
• Zoning and land use restrictions
• Facility inspection and condition

Financing Farmland

• Farm Credit System lenders
• Commercial banks with ag lending
• FSA loan programs
• Seller financing options
• 1031 exchanges for tax deferral

Cost Considerations

Farmland values vary dramatically by region—from $3,000 per acre in some areas to $15,000+ in prime Midwest locations. Real estate commissions typically run 3-6%. Appraisals cost $1,000-5,000+ depending on complexity. Due diligence costs (environmental, survey, title) add several thousand dollars.