What to look out for when buying land

Malik Miller
6 days ago
2 min read

When buying agricultural land, financial viability, compliance, and suitability for your intended operation must be your top priorities. Based on USDA loan eligibility requirements, conservation program criteria (EQIP/CPA-1200), and business plan templates you’ve provided, here is a checklist of what to look out for when buying land:

🔍 1. Legal and Ownership Considerations

Clear Title & Deed: Ensure no liens, disputes, or encumbrances. Confirm legal owner.
Zoning Laws: Verify the land is zoned for agriculture. Local regulations may prohibit certain operations (e.g., livestock or cannabis).
Water Rights: Essential for irrigation or livestock. Confirm deeded rights or legal access to water sources.
Access: Legal access via public road or easement is critical, especially for compliance with FSA and NRCS program eligibility.

🌾 2. Land Suitability for Agricultural Use

Soil Quality: Conduct a soil test. Ideal soil pH, organic matter, and nutrient levels vary by crop but are critical to productivity.
Drainage: Look for signs of poor drainage, erosion, or flooding. Poor conditions can disqualify EQIP funding.
Topography: Avoid steep or uneven land unless planning to invest in terracing or erosion control.
Climate and Microclimate: Align climate zone with crop or livestock needs. Check frost dates, rainfall, and drought history.
Pest and Weed Pressure: Historical issues with invasive species or pests can indicate ongoing problems.

💧 3. Infrastructure and Utilities

Fencing: Required for livestock or organic certification buffer zones.
Water Supply: Is there a functioning well, irrigation system, or municipal supply? EQIP funds may help upgrade but not always install new systems.
Buildings & Structures: Assess barns, sheds, housing, and greenhouses for condition and code compliance.
Electricity: Availability and reliability matter for cold storage, fencing, irrigation, etc.

💸 4. Financial & Operational Impact

Cost per Acre vs. Productivity: Ensure the purchase price aligns with the income potential of the land.
Development Restrictions: Land enrolled in conservation easements or programs like CRP may limit use but offer financial offsets.
FSA Loan Suitability: Land purchase must meet FSA guidelines. See FSA-2001 for documentation needed.
Access to USDA Programs: You must be able to demonstrate control of land (ownership or lease) to qualify for EQIP or CSP funding.

⚠️ 5. Environmental and Regulatory Flags

Wetlands & Highly Erodible Land (HEL): Triggers additional compliance requirements with NRCS. Noncompliance can disqualify from cost-share funding.
Chemical Residues: Especially critical for organic transition—check if synthetic pesticides/herbicides were recently used.
Endangered Species or Cultural Resources: Presence of protected habitats or artifacts could severely restrict land use.

📊 6. Market Proximity & Logistics

Distance to Market: How close is the farm to processors, buyers, farmers markets, or distribution centers?
Labor Pool: Are there local skilled workers? Labor access is often underestimated in rural areas.

🧾 7. Documentation to Review Before Purchase

Soil test results
Land survey and plat map
Water rights documentation
Easement agreements
Title and deed history
Prior use records (for organic certification or EQIP irrigation history)
USDA conservation plan (if one exists)