There are a number of factors that should be taken into account before acquiring farmland. Many of the problems associated with this type of real estate transaction can be avoided if you do your research and make the proper preparations to protect your investment. From determining how you will use the land to what kind of farm insurance you need, you can sidestep unnecessary headaches by making sure you’ve carefully thought through everything. Below are some of the most important considerations involved when purchasing farmland.

Farm Insurance Specialists Go Over 5 Things to Think About Before Buying Farmland

1. Land Use

One of the first things you must think about is how you intend to use your farmland. This will influence how much property you should acquire and which amenities you will need to have access to. It will also impact the type of soil and drainage system you look for and whether you wish to buy developed or undeveloped land.

2. Financing

If you plan to finance the purchase of your farmland, it’s best to consult with a lender who is specifically familiar with rural properties and the farm business. They will understand property values and can give you a general idea of what kind of return you can expect to yield from your investment.

3. What’s Included in the Sale

Before signing a contract, it’s essential to make sure you know exactly what will be included in the sale agreement. Your contract should provide a detailed list of all the items you will be getting along with the land, such as farm equipment, fences, feeders, and farm structures. 

4. Insurance Needs

The agricultural industry is exposed to many different hazards that threaten the welfare of farmland owners. Making sure you have sufficient farm insurance is the most effective way to protect your assets and financial future. A comprehensive policy will include coverage for your dwelling, liability, outbuildings, livestock, crops, and equipment.

5. Zoning Restrictions

Zoning laws are put into place to designate how different properties should be used. You will need to learn about any zoning regulations in your jurisdiction that specify what you may and may not be allowed to do with a piece of farmland. Failing to comply with these requirements can lead to a host of problems.

There is quite a bit to consider when buying any kind of property, but when it comes to closing a deal on farmland, there are even more complexities to make sure you’ve analyzed prior to completing the transaction. Fortunately, the professional agents at Fritch Insurance are available to help residents throughout southeast Nebraska and northeast Kansas take care of all their farm insurance needs. They evaluate all the risks related to ownership to ensure each client is adequately covered. Contact them at (402) 223-3312 to request a quote or visit their website to learn more.