Noah Hopp

When valuing farmland, accuracy is everything. A certified farm appraisal relies on a combination of local knowledge, professional expertise, and—most importantly—market data. But how exactly does market data shape the adjustments an appraiser makes when determining a farm’s value? Let’s break it down step by step. Why Market Data Matters in Certified Farm Appraisals Farmland is unique. Two farms for sale in the same county can have vastly different values based on soil quality, access, drainage tile, or the presence of usable outbuildings. Certified appraisers use market data, like recent sales of similar farmland, to set a base value. They then adjust this value to account for differences in the property. This process ensures that real-world transactions, not just theory, support the final opinion of value. Step 1: Gathering Comparable Sales The starting point is identifying comparable farm sales (often called “comps”) in the area. Ideally, these comps: Sold recently (within the last 12-18 months, if possible) Are similar in size and location Have comparable soil ratings and productivity indexes Have a similar mix of tillable land, pasture, and other uses Include or exclude improvements similar to the subject property Appraisers gather this data from multiple sources: county records, MLS data (if available), auction results, FSA/NRCS databases, and trusted local market contacts. Step 2: Analyzing the Sales Once the comps are identified, the appraiser looks at: Sale price per acre Soil productivity ratings (CSR2, PI, NCCPI, etc.) Tillable percentage Drainage improvements Access and location (proximity to markets or major roads) Additional income potential (wind rights, CRP payments, hunting leases, etc.) These details help the appraiser understand what drove the sale price and how it reflects the local market. Step 3: Making Adjustments Rarely is a comparable sale an exact match to the subject property. That’s where adjustments come in. For example: If the subject farm has better soils than a comparable sale, the appraiser may adjust the comparable sale’s price upward to reflect the subject’s superior quality. If the subject farm has poorer drainage or less tillable acreage, the appraiser may adjust downward. Location differences—closer to a grain elevator, better road access—may also warrant an adjustment. These adjustments are typically quantified on a per-acre basis and supported by market evidence. Step 4: Reconciling the Data After making individual adjustments, the appraiser looks at the adjusted sale prices to determine a reasonable range of value per acre for the subject property. From there, they reconcile the information into a final opinion of value. Why This Matters to Land Owners Understanding how market data drives adjustments helps landowners see why their farm is worth what it is. It also underscores why hiring a certified appraiser who understands the local market is critical. Without solid market data, adjustments would be guesswork. With it, you get a transparent, defensible value that reflects current conditions and trends. In short, Certified farm appraisals are rooted in real market evidence. By analyzing comparable sales and carefully adjusting for differences, appraisers provide a fair and accurate opinion of value that stands up to scrutiny—whether for estate planning, lending, or selling your farm. If you need a certified appraisal in Iowa, contact Associate General Appraiser Noah Hopp today. If you’re considering buying, selling, or managing a farm, reach out to a land agent in your area at High Point Land Company!

When it comes to farmland, not all appraisers are created equal. Many appraisers know about homes, commercial buildings, or real estate. However, valuing farmland is a special skill. It needs a strong understanding of the land and the agricultural market. If you are having a farm appraised, it is important to choose the right appraiser. This is especially true for sales, estate settlements, financing, or taxes. Make sure to work with an appraiser who specializes in land appraisals. Here’s why. 1. Farmland Values Are Driven by Unique Factors The value of farmland isn’t based on curb appeal or rental income like other properties. Instead, it depends on: Soil productivity (CSR2, PI, NCCPI ratings, etc.) Tillable acreage vs. pasture or timber Access and location relative to markets Income potential (cash rent, crop yields, CRP payments, or hunting leases) Local agricultural trends and buyer demand A land-focused appraiser understands how these factors affect value. They can compare your farm to recent sales accurately. 2. They Understand Local Agricultural Markets Farmland values can vary significantly from one county to the next—sometimes even from one township to another. A specialized land appraiser follows: Local auction results Private sales of nearby farms Changes in commodity prices Trends in cash rent rates Buyer activity (farmers vs. investors) This insight is critical because an outdated or generalized view of the market can lead to overvaluation or undervaluation of your property. 3. They Have the Right Data Sources Land appraisers have access to agricultural-specific data sources, such as: County FSA and NRCS offices for acreage and soil maps Land sale databases tailored to farmland Drainage and easement records Historical yield and productivity data A general residential or commercial appraiser does not often work with these details. This can lead to missed value considerations. 4. Farmland Appraisers Know How to Adjust for Land-Specific Differences No two farms are the same. A land-focused appraiser knows how to make adjustments for unique characteristics like: Better or worse soil quality than the comparable sale Presence (or absence) of drainage tile Usability of outbuildings Topography and flood risk Farmability These subtle differences can add or subtract thousands of dollars per acre, so getting them right is essential. 5. Their Reports Are More Defensible If your appraisal will be used for: Estate settlement or probate Bank financing Litigation or tax purposes …it needs to be defensible and backed by solid agricultural market data. A land appraiser can clearly explain how they determined the value, why they used certain comps, and how they made each adjustment. 6. It Can Save You Time and Money Hiring an appraiser who lacks farmland expertise can result in an incorrect valuation. This mistake may force you to spend more time and money on a second appraisal. It could also cost you thousands in a sale or financing deal. A specialized land appraiser gets it right the first time. The Bottom Line Farmland is a specialized asset that requires specialized knowledge. A land appraiser knows the agricultural market well. They understand what affects farmland values. They also have the right data to support a clear and strong opinion of value. Whether you are selling, buying, refinancing, or settling an estate, picking the right appraiser is important. It can protect your investment and give you peace of mind. If you need a certified appraisal in Iowa, contact Associate General Appraiser Noah Hopp today. Have you recently inherited land and are unsure of what to do? Contact a local land agent. For more questions regarding land real estate, visit our YouTube Knowledge Center!

Noah Hopp Iowa Land Specialist | Associate General Appraiser When you need financing, settling an estate, or buying or selling property, a certified appraisal is important. It provides a reliable and unbiased value to aid in significant decisions. But how do I get a certified land appraisal? Here's a breakdown of the typical steps involved in the certified land appraisal process. 1. Initial Contact: Reaching Out to the Appraiser First, contact a certified land appraiser near you with experience in the type of property you need appraised. This may include land, buildings, or a combination of both. During this initial conversation, you'll typically discuss the purpose of the appraisal, property details, timelines, and any special considerations. 2. Signing an Engagement Letter Before work begins, you'll receive an engagement letter from the appraiser. This formal document outlines the scope of work, fees, timeline, and responsibilities of each party. Once both sides agree and sign, the appraiser can begin their due diligence. 3. Gathering Accurate Information One key part of the process involves collecting property-specific data. The appraiser often works with the Farm Service Agency (FSA) or local land offices. They gather accurate information about soil types, land use history, acreage, improvements, and legal boundaries. This step ensures that the appraisal relies on verified, current land data. 4. Searching and Analyzing Comparable Sales The land appraiser examines recent sales of similar properties, known as comps, comparables, or comparable sales. This helps them find market trends and set a value. When selecting relevant comparables, we consider factors such as location, size, land use, and improvements. 5. Extracting Proper Adjustments from Market Data No two properties are exactly alike. That’s why appraisers must apply market-derived adjustments to the comps. For instance, researchers quantify differences in land access, productivity, or improvements using data from the local market. This step is critical for arriving at a fair and defensible valuation. 6. Preparing the Final Land Appraisal Report Once all data has been gathered and analyzed, the appraiser prepares a comprehensive final report. This document has detailed descriptions of the property. It includes market evaluations, comparable sales, and valuation methods. Finally, it gives an opinion of value. The team prepares the report in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). 7. Deliver the Land Appraisal to the Client The final step is for the land appraiser to deliver the report to the client. You can choose to do this electronically or as a printed copy based on your preference. From here, you can use the appraisal to support lending, estate planning, legal matters, or internal decision-making. Getting a certified appraisal is a structured, multi-step process that ensures transparency, accuracy, and credibility. Working with a certified land appraiser who is familiar with your industry or local market is crucial. This is especially true for agriculture or rural property. A good appraiser will help you obtain an appraisal that accurately reflects the fair market value. If you need a certified appraisal in Iowa, contact Associate General Appraiser Noah Hopp today. Do you want to learn more? Have you recently inherited land and are unsure of what to do? Contact a local High Point Land Company agent. For more questions regarding land real estate, visit our YouTube Knowledge Center! About Noah Hopp Growing up in New Hampton, IA, Noah Hopp was the youngest of four brothers. Noah took every opportunity he could to spend time outdoors and was deeply involved in athletics. He attended Iowa State University, where he developed a love for farmland. Noah married his 7th-grade sweetheart and moved to Cedar Falls, IA, where he currently resides. Noah primarily focuses on helping Families handle estate sales and selling row crop ground located in Central Iowa. To buy or sell farmland in Central Iowa, Noah is here to help. He can also provide information about the current market conditions. Related Pages Certified Land Appraisal Services Why you need a Certified Appraiser