Achieving Successful Farm Financing, Part 2

Last time in this space, we went over some of the first steps that go into achieving a successful agricultural finance situation. Farm credit loans may seem complex, and they do have a few important steps, but in the end this process is pretty straightforward.

And at Farm Mortgage Loan, we’re here to help with every step. With that in mind, let’s finish up our list of the stages of the farm loans process and acquiring land.

Get In Touch With Sellers

Once you’ve found a suitable property, it’s time to contact its seller. You’ll want to have a wide range of questions ready for this person, including basics on utilities, water sources, structures, previous AG production, zoning restrictions, any liens, access roads or property considerations, and any issues they’ve had with the property in the past. Ask why the sellers are selling the property as well, as this can often provide a glimpse into any problems you should be aware of.

Inspect Property

With an experienced pro if possible, you should always walk the property yourself before purchasing with permission from the seller. Take photos wherever possible, and make sure to note things like land boundaries and water sources.

Meet the Neighbors

Neighboring land owners are a great resource, not only because you might interact with them in the future, but also because they can help advise you on the quality of the land you might purchase. Ask them about basic history or any other questions that might help with your research. Neighbors often help you pick up important red flags.

Research and Making an Offer

If you don’t see any major issues, the last step is doing some final research before making an offer. Check out previous appraisal values for the area or that specific property, and look into the area’s history and other factors. Check into important factors like the cost of running utilities into the property.

Rom here, take a smart approach to your offer. Most farm properties sell for about 85 percent of their initial asking value – you can offer lower than this, but don’t be insulting and turn the seller off. Make sure you leave room for ab it of negotiation on both sides.

Contract Review

Once you and the seller have agreed on a price, make sure you have the contract reviewed by an independent third party. You and the seller should split the cost here.


Finally, it’s time to close. You should have all your financing in place, and you’ll meet with the title company to sign the proper documents and get things closed out.

For more on the process of acquiring AG financing and land, or to learn about any of our farm loans, speak to the pros at Farm Mortgage Loan today.

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