4 Things To Obtain Before Signing A Farm Purchase Agreement
Whether you are an experienced farmer or one who is just beginning, having access to land suitable for farming is a must for success. Those who have inherited or will inherit land to farm are fortunate, but for other beginning farmers, it will be necessary to purchase land that will grow the crops or livestock they plan to produce. Like all large expenditures, the purchase of farm land can also come with some hefty risks. If you are shopping for farm land now or will be doing so soon, remember to insist on these four things before you sign any farm purchase agreement.
An aerial view of the land
Different types of farming can require different types of land and having access to an aerial view of the entire property is one of the best ways in which a prospective purchaser can do this. In addition, this type of mapping will help illustrate how the land is located, in conjunction with other farms and land in the area. In most counties, these maps are available through the soil and water district or the county assessor's office for a nominal fee.
A current survey
Knowing the exact boundaries of any land you are considering is the best way to avoid future problems, such as those that might occur with neighbors or community planning and zoning officials. A current survey provides reliable information for the location of each boundary line, access, and improvement involved and helps purchasers ensure there are no easement or encroachment issues that should be addressed.
A soil test and water test
Any type of crop or livestock you want to farm will need nutritious soil and clean water to promote their growth. So before agreeing to purchase any parcel of farmland, take time to get soil samples tested from several locations on the land, as well as having water samples from farm wells and springs tested for purity.
An itemized inventory
Farm sales often include equipment, implements, supplies, infrastructure, and even vehicles. But if these items are only discussed verbally, both buyer and seller can experience confusion on what is or isn't included in the actual sale. To avoid this confusion, and any disagreements that can ensue because of it, make sure that you receive, review, and agree with an itemized inventory of these items before moving forward with the purchase of any farm or parcel of land.
In addition to obtaining these things before signing any offer to purchase, buyers should also make sure to purchase a good title insurance policy that will protect their interests, as well as their lender's, should a problem arise after closing.
For even more great tips on purchasing farms for sale in your area, prospective buyers should insist on working with the right real estate professional. Look for one with recent, verifiable experience in local farm sales to help ensure that your farm purchase will be a success.