Farmland Due Diligence Checklist: 20 Things to Verify Before Buying

Before You Buy

Farmland is a major investment. Thorough due diligence can prevent costly mistakes. Here are the 20 most critical items to verify.

Land Quality

1. Soil survey: USDA soil maps and CSR ratings
2. Drainage: Tile drainage maps and condition
3. Topography: Slope and erosion issues
4. Yield history: Actual crop yields for the past 5-10 years
5. Water rights: Documented irrigation and water access

Legal and Financial

6. Title search: Clear title with no liens or encumbrances
7. Survey: Verified boundaries and acreage
8. Environmental: No contamination or wetland issues
9. Zoning: Agricultural zoning protections
10. Easements: Utility, pipeline, or access easements

Operations

11. Lease terms and tenant history
12. Equipment and infrastructure condition
13. Crop insurance history
14. Government program enrollment (CRP, ARC, PLC)
15. Adjacent land use and development plans

Financial Analysis

16. Comparable sales
17. Cash rent rates in the area
18. Property tax assessment and ag exemption
19. Insurance costs
20. Capital improvement needs