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For many farmers, the land they own is more than an asset—it part of their legacy. It’s often the soil where generations have planted, harvested and built a life. It’s the place where hard work meets hope, and where nearly every acre tells a story. So, when the time comes to expand your farm’s footprint, the decision carries a weight that is not just financial, but deeply personal.
Whether you’re growing your operation, planning for succession or investing in the future, here are five ways to approach farm real estate purchases with clarity, confidence and care.
Start with Vision, Not Just Value
Before you look at land listings or attend auctions, ask yourself: What does this land mean for my future? Is it a step toward building something for the next generation? A way to increase production? Or a chance to secure your place in a changing market?
Land is a long-term commitment. The best purchases are made when they’re part of a bigger plan. That’s why your first move should be to define your goals and understand how this expansion fits into your broader business and personal vision.
Surround Yourself with the Right People
Land transactions are complex, and agriculture adds another layer of nuance. You need a team that understands both the emotional and financial stakes. This includes:
- Your lender – A trusted agricultural lender like Farm Credit Mid-America can help you evaluate financing options, run breakeven analyses, and understand how the purchase will affect your cash flow and borrowing capacity.
- An appraiser – Knowing what land is actually worth in your area is critical. Farm Credit Mid-America’s internal appraisal team can provide localized insights.
- A realtor or auctioneer – They’ll help you navigate negotiations and contracts.
- An attorney and accountant – Legal and tax implications can be significant. These professionals ensure the transaction is clean and your financials are protected.
Know Your Numbers, Honor Your Legacy
Before you make an offer, take time to understand the financial impact. Ask yourself and your lender:
- How will this purchase affect my cash flow?
- What’s the breakeven point for this land?
- How does it compare to similar sales in the area?
- What loan structures are available, and which best fits my risk tolerance?
- Will this purchase limit my ability to borrow in the future?
Getting pre-approved not only clarifies your budget—it strengthens your negotiating position and helps you make decisions that honor both your business and your legacy.
Avoid the Pitfalls of Rushed Decisions
In a competitive market, it’s tempting to move fast. But speed can lead to costly mistakes. Common missteps include:
- Overestimating income potential without calculating breakeven costs
- Skipping documentation in favor of handshake deals
- Ignoring long-term impacts on your financial flexibility
Take the time to document every agreement and ensure the purchase aligns with your operational and financial goals.
Think Generationally, Not Transactionally
Land purchases should support your operation’s evolution—not just its expansion. Whether you're planning for retirement, transitioning the farm to the next generation, or simply building equity, your land strategy should reflect your long-term vision.
Farm Credit Mid-America’s Growing Forward® program supports young and beginning farmers with tailored financing and educational resources, helping ensure that land transitions are smooth and sustainable.
Your Next Step: Make It Count
A land purchase is more than a transaction—it’s a turning point. It’s a chance to grow your business, deepen your roots, and shape the future of your farm. By aligning your goals, assembling the right team, and understanding the key agricultural credit decision factors, you can make a confident, informed investment in your farm’s future.
Let’s talk.
Connect with your Farm Credit Mid-America team to explore your options, assess your financial readiness, and take the next step toward growing your operation with purpose—and heart.
Loans subject to credit approval. Additional terms and conditions may apply. Farm Credit Mid-America is an equal opportunity lender.
Growing Forward® is a registered trademark of Farm Credit Mid-America.
