Commercial farming can be rewarding and lucrative if it is done right. One of the biggest transactions a commercial farm will have to deal with is purchasing farming lots. Since purchasing farmland can be a very big investment, it is important to be prepared and organized before you make a purchase. You are much more likely to buy the right farming lots if you know what you are doing and think the purchase through. If you are planning on purchasing farmland in order to expand your commercial farm, the following tips to help you buy the right farming lots:
Assess Your Financial Situation
Before you begin looking for farming lots for sale, it is essential to understand your farm's financial situation. Depending on the price of farmland in your area and the size of your farm's cash reserves, paying for farming lots in cash can be a good idea. However, if farmland is currently priced high or your farm does not have the liquid assets available to make a cash purchase, you will need to look into a loan. Agricultural loans that can be used to purchase farmland have a variety of requirements, so talk to a lending institution to find out what you need to do to qualify.
Learn About the Soil
One of the most important things about farming lots is the quality of the soil. The last thing you want is to spend a lot of money on farmland only to discover that the soil quality is poor or does not have the right mineral and nutrients for the type of crops that your farm grows. If you are interested in a farming lot, always ask for a copy of its soil report. The soil report will provide very important information about the makeup of the soil, its nutrients, and what type of crops have been grown in the soil in the past.
In addition to learning more about the soil, it is also essential to know what the water source is for a farming lot. Make sure that the lot you buy has a sustainable source of water; if the lot has irrigation, make sure that the irrigation system is in good repair. In the event that the farmland has a well, check to ensure that the well has been properly maintained and has access to an ample supply of groundwater so you can keep crops watered.