Does Tiling Farmland Increase Land Value? A Simple Guide for Landowners

Tiling farmland—installing subsurface drainage to manage excess water—has become a common improvement among farmers and landowners. The goal is simple: improve soil health, raise yields, and increase the farm’s long-term productivity. But does tiling always raise land value? Below, we break down the benefits, how tiling affects value, and what you should consider before investing.

The Benefits of Tiling Farmland

1. Better Soil Health
   Tiling helps remove excess water from the soil. When soil stays too wet, roots lose oxygen, plants struggle, and fields may compact. With proper drainage, plants develop stronger roots and grow more evenly. Healthier soils lead to better long-term productivity.
2. Higher Crop Yields
   Waterlogged fields cause delays in planting and increase the risk of disease. Tiling reduces standing water and improves field conditions. Many farmers see yield increases of 10% to 30%, depending on soils and weather. Higher yields generally increase profitability.
3. Faster Field Access
   Wet fields can delay planting, spraying, and harvest. Tiled fields dry faster, allowing farmers to complete fieldwork on time. This reduces the risk of lost yield due to missed planting windows.
4. Reduction in Field Work Delays
   Wet fields can delay critical farming operations such as planting, spraying, and harvesting. These delays can lead to missed planting windows, which can negatively impact yield potential. Tiling ensures fields are drier and more accessible, allowing for timely field operations and reducing the risk of yield loss due to delayed planting or harvesting.
5. Better Nutrient Use
   Well-drained soils make fertilizer use more efficient. Roots absorb nutrients more easily, which leads to healthier plants and stronger yields. Good nutrient efficiency is also better for the environment.
6. More Resilient Fields
   Tiling helps fields handle both heavy rain and wet seasons. Better drainage keeps crops from drowning during wet years and creates more stable conditions overall.

How Tiling Affects Farmland Value

1. Improved Return on Investment
   Tiled land usually produces more consistent yields. Buyers see this as lower risk and may pay more for a farm with proven drainage.
2. Stronger Buyer Demand
   In many areas, buyers prefer tiled land because they don’t have to invest in drainage themselves. This can increase competition and raise the sale price.
3. Higher Appraisal Values
   Appraisers consider drainage and productivity when valuing farmland. Well-tiled farms often receive higher valuations, though the exact increase varies by region and soil type.
4. Better Rental Income
   Tenants often pay higher rent for tiled acres because they offer better yield potential. Higher rental income supports stronger land values.

Factors That Influence Tiling’s Effectiveness

1. Soil Type 
   Heavy clay soils benefit most. They drain poorly without tiling. Sandy soils drain naturally and may not need as much tile.
2. Topography
   Slope and elevation affect how water moves, which shapes tile design and performance.
3. Climate
   Regions with frequent rainfall and wet fields see the largest impact from drainage improvements. Drier regions see less.
4. Existing Drainage
   Older systems and surface ditches may already help drainage. In some cases, upgrading the system may be more cost-effective than starting from scratch.

Considerations Before Installing Tile

1. Cost vs. Benefit
   Tiling typically costs between $500 and $1,500 per acre. Run a cost-benefit analysis based on your soils, yields, and local land values. Talk with drainage contractors for accurate estimates.
2. Environmental and Legal Requirements
   Some areas regulate drainage to protect waterways and wetlands. Always check local rules before installing tile. Use best management practices to prevent nutrient runoff.
3. Ongoing Maintenance
   Tile lines can plug or break over time. Plan for repair and maintenance to keep the system working properly.
4. Impact on Conservation Programs
   Some conservation programs limit drainage improvements. Review program rules to avoid losing benefits tied to CRP or similar programs.

Conclusion

Tiling can raise land value by improving yields, reducing field delays, and making farmland more resilient. But the true gain depends on your soil, climate, market conditions, and long-term goals. Before investing, consult with local experts—agronomists, drainage contractors, and farmland professionals. Their insights will help you make a decision that fits your farm.

For further reading on the impact of tiling on farmland and its potential return on investment, you can refer to the following resources:

• University of Illinois Extension – Farm Management
• Purdue University Extension – Drainage Resources
• Agri Drain – Agricultural Drainage Solutions
• Iowa State University Extension and Outreach – Drainage Systems

If you want personalized guidance on improving your farmland value, Whitaker Marketing Group is here to help.

If you have any questions about tiling, reach out to experts in the field, like David Whitaker and call at (515)-996-5263, and he’ll be happy to assist you with any concerns or provide expert guidance to help you navigate the complexities. You can also reach out via email at info@wmgauction.com to discuss anything.