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Investment Goals

Farmland Investment Questions

Understanding your land sales goals is an important first step in any farmland purchase. The Loranda Group can help you assess your needs to make sure your purchase meets your long-term investment goals.

aerial view midwest farmland ag real estate land

  • Have I thought about what I really want to buy?
    Investment parameters to consider when purchasing a property include: total dollars to spend, number of acres, soil quality, targeted rate of return, desired location, time frame, etc. Knowing what you want and can afford in advance will make the entire process much easier.

  • Do I have the expertise to analyze all available properties? Farmland is a specialized asset that requires knowledge of soils, drainage, fertility, weather patterns, the government farm program, locational characteristics, rental rates, and current land prices. Not understanding the impact of one or more of these variables can be extremely costly. Remember…the broker or auctioneer representing the seller is under no obligation to educate you.

  • Do I have the time to find and look at all available properties? The property that best meets your interests or investment parameters may be hundreds of miles away. Does it make sense to have a farmland expert investigate these properties for you?

  • Do I need a farmland specialist to represent my interests? A broker that understands the nuances of agricultural or transitional properties and works exclusively for you can be a very valuable asset to have—to educate you about your investment, protect your interests, and minimize the risk of a “bad” purchase.

  • Does my agent buy and sell farmland on a regular basis? Anyone holding a real estate license can assist you in purchasing farmland but may not have the the expertise you need. Ask for credentials and references to ensure you are getting an ag land expert.

  • How much is hiring a farmland specialist really worth to me? It can be quite easy to overpay for a property by 10–20% if you don’t understand the complexities of the issues listed above. Fortunately, most agents representing a farmland buyer are paid by the seller’s agent as part of a commission sharing arrangement.

Answering these questions will define your goals for investing in agricultural land and determine how much assistance you need to accomplish them. For help in selecting a broker, consider these questions.