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This insight is critical because an outdated or generalized view of the market can lead to overvaluation or undervaluation of your property.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!
