Buying farmland is a major investment, especially when you plan to farm it yourself. However, not every farm is a good fit for every farming operation.
Before purchasing farmland, it is important to look beyond the asking price and total acres. Soil quality, location, drainage, field layout, and operating costs can all affect how well a property fits your needs.
So, how do you know whether farmland is suitable for your farming operation?
The best way to determine whether farmland is a good fit is to evaluate its soil productivity, tillable acres, drainage, accessibility, location, and financial potential. You should also consider how the property fits with your existing equipment and farming practices.
Here are the most important things to consider before buying farmland in Iowa or throughout the Midwest.
1. Does the Farmland Have Good Soil Quality?
Soil quality is one of the first things to evaluate when purchasing farmland.
In Iowa, buyers often use the Corn Suitability Rating 2 (CSR2) to help measure a farm's potential for row crop production.
CSR2 scores range from 5 to 100, with higher ratings generally indicating better soil productivity potential.
For example, a farm with an average CSR2 of 90 may offer stronger crop production potential than a farm with a CSR2 of 60. However, soil ratings are only one part of the evaluation.
Other factors to consider include:
Soil types throughout the property
Historical corn and soybean yields
Soil fertility and nutrient levels
Erosion and slope
Water-holding capacity
Areas with consistently poor production
A farm with a lower CSR2 may still be a good investment if it is priced appropriately and fits your operation.
The key is understanding what the soil can produce and whether the purchase price makes financial sense.
2. How Many Acres Are Actually Tillable?
When evaluating farmland, it is important to understand the difference between total acres and tillable acres.
A property advertised as 160 acres does not necessarily contain 160 acres of productive cropland.
Some acreage may consist of waterways, timber, terraces, ponds, roads, or other non-tillable areas.
For example, consider two farms:
Farm A:
160 total acres
155 tillable acres
Average CSR2 of 82
Farm B:
160 total acres
135 tillable acres
Average CSR2 of 82
Even though both farms have the same total acreage and soil rating, Farm A offers 20 additional tillable acres.
Those additional acres could make a significant difference in crop production and revenue.
Before buying farmland, review the FSA records, aerial maps, and available tillable acreage information.
3. Does the Farm Have Adequate Drainage?
Drainage can have a major impact on farmland productivity.
Poor drainage may delay spring planting, create wet spots, reduce yields, and make harvesting more difficult.
When evaluating farmland, ask whether the property has drainage tile and whether the existing drainage system is functioning properly.
Important questions include:
Is the farm pattern tiled or spot tiled?
Are tile maps available?
Where does the drainage water outlet?
Are there areas that regularly hold water?
Have drainage improvements been made recently?
Are there known drainage problems?
A farm with well-maintained drainage may offer more consistent production and fewer delays during wet growing seasons.
However, buyers should also consider whether additional drainage improvements will be needed.
Those improvements can add to the overall cost of purchasing the farm. Any proposed work should be reviewed for applicable drainage laws and conservation restrictions.
4. Is the Farmland Close to My Existing Operation?
Location matters when purchasing farmland for an existing farming operation.
A farm located five miles from your equipment and grain storage may be easier and less expensive to operate than a similar property located 40 miles away.
Travel time can increase costs associated with:
Moving tractors and equipment
Transporting harvested grain
Fuel consumption
Employee time
Equipment maintenance
Coordinating planting and harvest schedules
For farmers looking to expand, purchasing land near existing fields can create operational efficiencies.
However, farmland farther away may still make sense if the property offers better soil quality, a favorable purchase price, or long-term expansion opportunities.
5. Does the Field Layout Work With My Equipment?
Field size and shape can affect farming efficiency.
Large, rectangular fields are often easier to farm with modern equipment than small, irregularly shaped fields.
For example, a 100-acre field with long, straight rows may be more efficient to operate than several smaller fields totaling the same acreage.
When evaluating a farm, consider:
Field shape and size
Number of separate fields
Terraces and waterways
Fence lines and tree lines
Obstacles such as utility poles
Equipment turning areas
Field entrances and access points
If you operate large planters, combines, or grain carts, make sure the property can accommodate your equipment.
A farm with difficult field layouts may require additional time, fuel, and labor.
6. Does the Property Have Good Road Access?
Access is another important factor when purchasing farmland.
A farm may have excellent soil and strong production potential, but limited access could create challenges.
Before purchasing, determine whether the property has legal access to a public road.
Also consider whether the entrances are suitable for your equipment.
Questions to ask include:
Does the farm have direct public road frontage?
Are field entrances wide enough for modern equipment?
Are there bridges with weight restrictions?
Will equipment need to travel on narrow roads?
Does the property rely on an access easement?
If the farm depends on an easement, review the recorded agreement to understand your access rights.
Good access can make a farm easier to operate and may improve its appeal to future buyers.
7. What Have the Historical Crop Yields Been?
Past crop production can provide valuable insight into how a farm performs.
When possible, request historical yield information for corn, soybeans, or other crops grown on the property.
Reviewing multiple years of production can help identify patterns.
For example, a farm may have an excellent CSR2 rating but consistently produce lower yields because of drainage problems or other management challenges.
Keep in mind that yields can vary based on weather, fertilizer programs, crop rotation, and farming practices.
Historical yields should be considered alongside soil information and other property characteristics.
Buyers should also understand that previous yield results do not guarantee future production.
8. Can I Afford to Farm the Property Profitably?
A farm may have excellent soil and a great location, but the purchase still needs to make financial sense.
Before buying, estimate the costs associated with owning and operating the property.
These may include:
Purchase price and financing
Property taxes
Seed, fertilizer, and chemicals
Equipment and fuel
Labor
Crop insurance
Drainage and maintenance expenses
Then compare those expenses with your expected crop revenue.
For example, a farm with higher-quality soil may command a higher price per acre, but it may also offer greater production potential.
On the other hand, a lower-priced farm could provide a better financial opportunity depending on yields, expenses, and financing.
The best farmland purchase is not always the cheapest farm. It is the farm that provides the best combination of productivity, operating efficiency, and long-term value for your situation.
9. Are There Any Restrictions on How I Can Farm the Land?
Before purchasing farmland, it is important to understand whether any restrictions could affect your intended use.
Some properties may have:
Conservation Reserve Program (CRP) contracts
Wetland restrictions
Conservation easements
Existing farm leases
Utility easements
Drainage agreements
Other recorded restrictions
For example, land enrolled in CRP generally cannot be converted immediately to row crop production without addressing the contract requirements.
Similarly, certain wetlands or highly erodible land may be subject to federal conservation compliance rules.
Before purchasing, review the property's FSA information, applicable agreements, and recorded documents.
Understanding these restrictions can help you avoid purchasing land that cannot be used as you intended.
10. When Can I Start Farming the Property?
If you are purchasing farmland to expand your operation, possession is an important consideration.
In Iowa, many agricultural leases are subject to a September 1 termination notice deadline.
Under Iowa Code Section 562.7, proper notice generally must be given by September 1 to terminate a covered farm tenancy effective the following March 1.
If the existing lease was not properly terminated, the tenant may have the right to continue farming the property for another growing season.
For example, if you purchase farmland in November 2026, you may be able to farm it in spring 2027 if the property is legally available.
However, if the existing lease continues through the 2027 crop year, you may need to wait until 2028 to begin farming.
Always confirm the possession terms before purchasing.
How Do I Compare Two Farms Before Buying?
If you are considering multiple properties, it can help to evaluate them using the same criteria.
Start by comparing soil quality, tillable acres, drainage, location, and access.
Then consider the purchase price and expected operating costs.
For example, one farm may have a higher CSR2 rating but require a longer drive from your existing operation.
Another farm may have slightly lower soil quality but be located directly next to land you already farm.
In that situation, the closer property could offer operational advantages that help offset the difference in soil quality.
There is no single formula that determines which farm is best.
The right choice depends on your operation, financial goals, and long-term plans.
Frequently Asked Questions About Buying Farmland
What is the most important factor when buying farmland?
Soil productivity, tillable acreage, drainage, location, and purchase price are among the most important factors. Buyers should evaluate all of these together rather than relying on one measurement.
Is a higher CSR2 always better?
A higher CSR2 generally indicates greater soil productivity potential, but it does not guarantee higher yields or make a farm the better investment. Drainage, management, location, and purchase price also matter.
How do I know if farmland has drainage tile?
Ask the seller or real estate broker for available tile maps and drainage records. You can also inspect the property and consult local drainage contractors. Not all existing tile systems are documented.
Is it better to buy farmland close to home?
Buying farmland near your existing operation can reduce transportation costs and improve efficiency. However, farms farther away may still be attractive depending on their price, productivity, and investment potential.
Should I buy farmland with fewer tillable acres?
It depends on the price and intended use. A property with fewer tillable acres may still offer value through pasture, timber, recreational opportunities, or future improvements.
Can I use CSR2 to determine farmland value?
CSR2 is a useful tool for evaluating Iowa farmland, but it should not be used alone to determine market value. Comparable sales, location, drainage, field layout, and local buyer demand also influence farmland prices.
Find Farmland That Fits Your Farming Operation
Purchasing farmland is about more than adding acres. It is about finding a property that works with your equipment, farming practices, and long-term goals.
At Whitaker Marketing Group, we help farmers, landowners, and investors buy and sell farmland throughout Iowa and the Midwest.
Our team understands the importance of soil quality, drainage, field layout, access, and local farmland values.
Whether you are looking to expand your existing operation or purchase your first farm, we can help you evaluate available properties and understand the buying process.
Looking for farmland that fits your operation?
Contact us today!
Whitaker Marketing Group – Land is Our Brand.
