How much down payment is required?

It varies by lender, borrower and property. Speak with agricultural lenders before making commitments.

Should I order a survey?

It may be wise when boundaries, access or acreage are uncertain. Contract terms determine responsibility.

Can I buy a farm with a tenant?

Yes, subject to the lease. Review income, notice requirements and possession carefully.

No. Sales can take time and transaction costs are meaningful, so farmland usually fits a longer investment horizon.

How to Buy Farmland: The Complete Buyer's Guide

Define what the farm must do

Decide whether the goal is owner-operation, expansion, rental income, recreation, a future homesite, long-term investment or a combination. Set a geographic area, minimum acreage and maximum total investment. A clear buy box keeps attractive but unsuitable properties from derailing the plan.

Auction Listings Real Estate Listings

Prepare financing early

Discuss down payment, collateral, interest rate, amortization, closing costs and liquidity with agricultural lenders before bidding or offering. Land auction contracts may not include financing contingencies. Prequalification is not the same as final approval, so understand the lender's remaining requirements.

Evaluate the land

Review soils, productivity ratings used in the state, tillable acres, drainage, topography, field shape, access, waterways, conservation practices and historical use. For buildings, wells, septic systems, fences or grain facilities, consider condition and future expense. Confirm that the intended use is allowed.

Study income and expenses

For leased farmland, review actual rent, lease duration, payment history and possession. Estimate property taxes, insurance, maintenance, management, drainage assessments and capital needs. Use realistic — not best-case — yield, price and vacancy assumptions.

Complete legal and physical due diligence

Review title, legal description, survey information, easements, mineral rights, access, environmental concerns, zoning, flood information and contracts. Walk the property when permitted. Use attorneys, lenders, agronomists, contractors and other specialists appropriate to the purchase.

Make an offer or bid

For a private sale, understand contingencies, earnest money and response deadlines. For an auction, register early, review the complete terms and set a maximum before bidding. Multi-parcel bidding may require evaluating several tract combinations in advance.

Close and take possession

Coordinate funds, insurance, title review and entity documents. Confirm who receives crops or rent, when possession transfers and how keys, records and tenant communication will be handled. Peoples Land Company can help buyers understand the process and locate current opportunities.

Frequently asked questions

How much down payment is required?: It varies by lender, borrower and property. Speak with agricultural lenders before making commitments.
Should I order a survey?: It may be wise when boundaries, access or acreage are uncertain. Contract terms determine responsibility.
Can I buy a farm with a tenant?: Yes, subject to the lease. Review income, notice requirements and possession carefully.
Is farmland liquid?: No. Sales can take time and transaction costs are meaningful, so farmland usually fits a longer investment horizon.

Ready to explore land ownership?

View current Peoples Land Company listings and upcoming auctions, or contact the team with questions about a specific property.