Agricultural Property Listings

Discover likely profits in farm land and avoid the hidden pitfalls

In today's global market, agricultural property continues to increase in value, due to the growing demand for biofuel production, quality food sources and future developmental potential.

Current farm land listings offer investors a wide range of opportunities if they can read between the lines. With thousands of farms for sale, choosing between worthwhile prospects and dead ends is imperative.

Searching online agricultural property listings to find rural land is the starting point. Finding the hidden investment potential in the listing details is the goal. To reduce time spent contacting brokers about every listing eliminate the ones that do not support your investment objectives. At the very least, you need to know:

1. Where to look.
2. How to determine initial investment potential based on listing factors.
3. How to identify agricultural property values.
4. How to narrow the potential list by questioning the broker.

Identify available agricultural property

Today's online agricultural properties databases allow you to search for rural land for sale by criteria you establish.

Look for clues to the history of the rural land

Your investment goals may be hampered if your intended land use is inconsistent with past land use practices on the farm land you are considering buying. Land used for grazing cattle can result in polluted irrigation water. If you want to turn the acreage into a viable crop farm, a waiting period may be necessary.
Amber Waves.   When the farm land listing offers surface or mineral rights, visit Geology.com to learn the difference. 

Determine the correct land value

Agricultural land is valued upon its current usage and improvements as well as its location. The asking price may or may not be a fair market value. A quick check can assure you're still in the game.
United States Department of Agriculture (USDA) Web site to download the most recent land values estimates by geographical area.  For more location-specific results hire an appraiser in the region, Artman.net maintains a list of farm appraisers around the country.

Follow up on potential agricultural property listings with a call to the broker

After weeding out listings with obvious pitfalls or ones that are contrary to your investment goals, follow up with a call to the brokers of the agricultural properties that remain. Ask specific questions to determine the feasibility of the farm land in question.
noxious weed present? Are there any utility or other easements that cross the property? Does the property have ingress and egress?  

• There is no substitute for viewing agricultural property in person. No matter how good the listing reads, unforeseen problems can crop up.
• Treat FSBO farm land listings in the same manner you would a listing handled by a broker.
• Question farm land listings that seem too good to be true, because they probably are.

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