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:
Identify available agricultural property
Today's online agricultural properties databases allow you to search for rural land for sale by criteria you establish.
I recommend: The database at
LandAndFarm.com regularly lists more than 10,000 farms for sale.
Realtor.com is another well-respected site with listings across the nation. To find remote rural land for sale by owner (FSBO), try hunting in the
local newspapers
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.
I recommend: Be on the lookout for the words "cattle" or "pasture" indicating past animal grazing. To determine the extent of the damage, and corrective measures necessary, consult
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.
I recommend: Visit the
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.
I recommend: Ask the broker about current usage of the farm land for sale. Is there
potable water on the property? Are
noxious weed present? Are there any utility or other easements that cross the property? Does the property have ingress and egress?
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