Will your farm be a business, or a hobby?

This is an important question for a couple reasons. First, the answer can seriously impact your tax burden. A working farm enjoys certain tax deductions so long as certain conditions are met, including maintaining records of transactions, revenues, and expenditures that increase the value of your property. If you don’t intend to seek a profit or document your transactions, then the IRS may revoke these deductions. Second, running a profitable family farm or ranch is hard work. In today’s agricultural economy, your chances of competing successfully with commercial farm operations are slim. If your goal in purchasing a farm is to turn a profit, then you’ll need to make sure you have the knowledge, the skill, and the time to adequately invest in your property.

How many acres is enough?

The way you intend to use the land will determine how much you need. If you want to build a country home, five to ten acres may be enough. If, however, you want to raise cattle, you’ll probably want more. 

How accessible is the property?

Once you buy the land, how will you get to it? Is there an entry point from a public road? If there is no public road, then you may not have the legal right to access the land, even if a private road exists

Is the topography a right match?

Is it wooded or cleared? Is there waterfront? Does it have Live Water running though the property like a stream or wet weather creek. Is there ponds, or lakes on the property? Is it flat or are there multiple levels of terrain to navigate? Rolling Hills make for great views, but they can limit the farming area. 

How much infrastructure already exists?

Farmland needs to be worked extensively to produce results, and this will be a lot easier if your property is already equipped with the infrastructure necessary to support your farm operation. Is there a barn, grain silo, or other farm structures on the property? Are there irrigation systems in place, and are those systems appropriate for your planned crops? Does the farm or ranch come with any fencing? The answers to these questions will give you more insight on the true value of the property beyond the sale price.

Does the land suit your farming needs or goals?

Not every piece of farmland is suitable for every purpose. When purchasing land, it’s important to know what crops or animals you intend to raise there, then evaluate a property based on that information. If you want to grow fruits or vegetables, for instance, you'll want to know that you have solid ground with access to full sunlight for production of your crops. If at all possible, be sure to visit the property at different times to check slopes for stability, evaluate sunlight conditions, etc. You can also obtain information online to evaluate soil conditions and potential yields.

What amenities currently exist?

It’s rare for rural property to be completely raw (untouched by people or machines). As you look at various pieces of land for sale, take note of the features on that land. Are there structures already built? Does it have a water well? If so, is the well still producing, and working? Find out what utilities already service the area before you assume there will be electricity, water, or internet. 

It's important to hire a Realtor who understands

Land Real Estate.