Buying Farmland

by Nasrul Hanis

Buying farmland needs you to do planning in order to ensure the possibility for revenue and avoid future risks. In doing property investment, some people are rather investing their capital on farmland rather than building lots or units in the urban area. Farmland somehow gives a greater benefit than the house units however it depends on various aspects of the particular farmland itself.

The most important thing is to determine how much acreage of the farmland that you need. The acreage represents how much do you want to invest for the farmland. Size also determines what you can do with the land. Prepare for long-term so you can plan for 10-15 years in the future. Don’t forget to consider physical features such as contours in the topography where physical features create micro-climates which affect the farmland. The resources on the farmland determines what and how much that you can produce from it so put this elements under your consideration. That’s why you need to determine your goal of buying farmland before go into the purchasing deal so you know what type of farmland with what resources that you want to find.

Evaluate the availability of water on the farmland that you want to choose for your investment. Make research of the farmland about the availability for water and any flooding history because flooding can be harmful. Check if there any water sources in or adjacent to the farmland. Also check local regulations regarding the use of ground or surface water for investment purposes. Keep in mind that without water, your farmland has not much value for production.

One more important thing that you have to consider is the security of your farmland. You might facing theft cases of equipment, crops, and livestock which could harm your investment. Make sure to check the distance between fields and the farmhouse. Check whether the farmland has fencing and if it does, make sure it offers the highest level of security and efficiency. If you are planning to raise the livestock, you need a fence that meets the security requirements and the animal species so you can ensure the efficiency of the production as well as the security matters for the livestock.

Choose your farmland wisely so you can ensure the success of your investment for now and in the future while helping to preserve the environment.

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{ 16 comments… read them below or add one }

Payday Loans No Credit Check April 26, 2010 at 9:26 pm

I would argue that investing in farmland today is as smart as it was 5 years ago. The fundamentals are still in place and this is an ideal way to add diversification and risk mitigation to any portfolio.

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cheap cars April 27, 2010 at 2:39 pm

Its always a better deal if you are interested in investing your stored money into a land because the land is the only thing which can generate the best revenues ever.. as the time goes, the value for the land will go on increasing,,. so its better to invest early.

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Frisco Real Estate April 30, 2010 at 2:58 am

I have helped several people purchase land for farms and horse properties. I don’t think they are a bad option, however the financing on properties like this are hard to come by. If you want land you will be paying out of pocket.

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jennifer christian louboutin shoes April 30, 2010 at 7:38 pm

thank you very much ! buying farmland is very interesting.

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Preston Guyton - Myrtle Beach Real Estate May 3, 2010 at 9:22 am

I work mainly on the real estate market and deal mainly with houses and apartments. This is something different and good to know about farmland. One more tip apart from what you said in the post: When checking the history of the farmland, one should check what crops the previous owner was growing so that you can plan out the next season crops accordingly. Let me know your feedback.

Regards,
Preston Guyton

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Nasrul Hanis May 31, 2010 at 9:44 pm

You might buy farmland for different purposes than growing crops however you should check what crops the previous owner was growing as it might determine what soil type and criteria of the farmland.

Different soil type, structure and criteria will affect your plan in developing the farmland whether you want to grow agricultural products or build structure – and that’s why you should see the history of previous crops.

Hope my answer is clear and thanks for your comment 🙂

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Biplob Kishore Deb May 5, 2010 at 2:56 am

Thanks for you advices.
Though I do not have any plan to invest on firmland, there is no doubt your advices would help the potential investors. It is true that water is essential for producing any corps. So, it is necessary to know the source of water before buying any firmland.

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Paul May 5, 2010 at 11:54 am

What is the method to find the value of raw land? Income, Comparative, or something else?

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Jon May 14, 2010 at 3:34 pm

Enjoyed this post very much – probably because it’s so out of our daily experience here. We have ranches on the Big Island, but the farms we once had (actually plantations) are long gone. Learned some new things – thank you.

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Themed Weekend Breaks May 19, 2010 at 11:18 pm

As population pressures increase farmland will become more valuable. So it is a smart financial decision.

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Cottages in England May 24, 2010 at 9:49 pm

Good farm land can be very hard to find at the moment, large areas of land around towns are being bought up by large corporations or development companies for town expansions.

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The Best of Buffalo May 28, 2010 at 9:49 am

My friend choose farmland instead of buying units here in Urban area. They choose it because he knows in the future he will be expecting a higher profits from it.

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Custom Signs June 7, 2010 at 9:57 pm

Ahh, I grew up surrounded by farms but don’t know a lot about its real estate. Thanks for the info!

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alex d September 16, 2011 at 2:40 am

If your ever interested in selling farm land, you can get custom real estate signs to help sell your land. Check out Csi signs, have the best real estate signs in Indiana.

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Anthony B. January 11, 2012 at 4:08 pm

Buying land in michigan can be a great investment for farming however it is important that you have a down payment saved to purchase. With commodity prices on the rise, farm land prices have also been up and will continue to rise.

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