Factors That Affect Farm Property Value

Factors That Affect Farm Property Value

June 12th, 2024

Owning a farm is a matter of pride but a lot of hard work too. All of this is worthwhile only if your farm appreciates at a good rate above the average price in the real estate market. The only way to ensure this is to understand what factors affect the value of your farm property and apply them effectively.

Although the land has a property value of its own, many factors can add to its value. For instance, the poor condition or excellent condition of the land may affect its price. If the land is used for agricultural purposes, its production capacity can add to the farm income. Apart from this, the location of the land, its terrain, the presence of water bodies on its premises, etc affect the average trading price of your land. If your farm is improved with a nice dwelling or barns that can push your value upwards. Likewise, if you have sold off any easements, your value on the open market might be less.

5 Critical Factors that Influence the Value of Your Farmland

Let us take stock of all the factors that affect the value of a farm property first.

Farm Income

This is the income generated by the farmland due to its usage for agricultural purposes. The land rent for tillable acres on the Eastern Shore of Maryland can be fairly high. Soil quality, field quality, and water quality are the factors that have an impact on these agricultural land values. It is also good to know the rent paid for this agricultural property along with its payment history. This should be compared to the yield generated in the same period to determine the net income through the income approach. In Kent and Queen Anne's Counties especially, leasing hunting rights can also generate significant income. If you have wooded acreage, the timber value may surprise you!

Real estate market conditions- supply vs. demand

The prevailing land prices in the area impact the value of the farmland. Apart from this, the number of buyers also plays a role. The higher the number of buyers, the better the land value.

The number of buyers is the demand for the farmland and this demand is created by many factors including the farm income of the land, the nature of its agricultural produce and yield, its location, soil composition, rental rate, etc.

If the type of farmland you own is unique in our area, its demand will be more as its supply is less. Waterfront farms for sale in Kent County, MD would be an example of this.

The prevailing agricultural land price in the area is determined by the number of sales in the area, the comparable sale prices, the adjustments made for differences in the farms, etc.

Call a professional appraiser to make property inspections and prepare a farmland value survey. They will give you a qualified appraisal report at a nominal appraisal fee. This appraisal report will help you get a fair acquisition price or average selling price as the case may be. Alternatively, a local real estate agent with a background and experience in agriculture could provide you with a comparative market analysis.


You can find a residential property in any location you like. But, finding an agricultural property in the location of your choice could be difficult. What you need here is the help of a reliable real estate agent to help you find the farmland of your choice in the location you like. Only these professionals will have contacts with such landowner groups and can help you clinch a good deal.

Commodity prices

This has a huge bearing on your farmland price. An increase in the commodity prices will cause a corresponding increase in your farmland value. The most commonly grown crops or commodities on the Eastern Shore of Maryland are corn and soybeans. Global Macro factors like drought, war, pest attacks, and the economy can impact local commodity prices.

Current economic conditions

The state of the broader economy influences the purchase and sale of farmlands. If there is a recession, this is sure to hit the farmland market too. The existing economic conditions can affect the short-term interest rates that farm owners pay on loans. They also affect the rental prices and the average rating price of the land.

During the Great Recession, farmland values rose during the run-up before they fell into a sharp decline. But, on the contrary, during the pandemic of 2019-2020, farmland values or pastureland values were not much affected.

Experienced real estate agents can predict such economic upheavals and help you get a fair market price for your farmland.

Real Estate Services for Farmland in Maryland

Engaging experts and trustworthy real estate agents like Billy Sutton and Lacey Sutton of Coldwell Banker Chesapeake Real Estate is as vital as asking a commercial appraiser to appraise your land. While the qualified appraiser assesses the physical condition of your land, your real estate advisor can help verify your land title documents, check its legal description, and fetch a good price within a reasonable period. They can sell your Kent County or Queen Anne's County farm to the right people and for top dollar!

Billy Sutton

Billy Sutton is a dynamic real estate professional at Coldwell Banker Chesapeake Real Estate in Chestertown, Maryland. With a deep-seated understanding of the local market, Billy has carved a niche in Kent and Queen Anne's counties, known for his exceptional negotiating skills, innovative marketing strategies, and problem-solving abilities. His expertise spans a wide range of properties, including residential homes, waterfront properties, and farmlands. Holding a Bachelor's degree in Agriculture, Billy brings a unique perspective to the agricultural real estate market. Outside of his professional life, he is an avid sports enthusiast and enjoys outdoor activities. His deep roots in the community and commitment to his clients make him a reliable and trusted advisor in the real estate sector.


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People Said

Billy Sutton was great to work with on the purchase of our poultry farm. He provides a wealth of knowledge and we were completely blown away with how resourceful he was. Anytime an issue came up or we were worried about something, he had an answer. He is direct, kept us updated, and made it an enjoyable purchase.

Eddie P.April 27th, 2020

Billy contacted me one day and said he had found my way into the poultry business. I had never used a realtor before so this was all new to me. He was very helpful with every question I had. He made sure I was stress free every step of the way, always made sure I had everything done that needed to be so that we were always a step ahead, and always informed me of things to be done that I didn't know about. I would highly recommend using Bill Sutton as your realtor.

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A very trustworthy and professional agent. I would definitely recommend him.

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Billy was a fantastic realtor. Being a first time home buyer I was a little stressed and nervous, however, Billy made it stress free and was always wiling to come whenever I needed to show me a house, or answer a phone call to explain something to me. I would definitely recommend Billy to anyone that is buying a house, first time, or fifth time!

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It was great working with Billy, He is very dedicated to his clients and will go out of his way to satisfy your needs. So if your looking for a hard working realtor Billy is your guy!!!!!

David W.November 1st, 2019

If i could give 10 stars I would. Billy was a perfect fit for us. He is a true professional and was very understanding of our concerns. Billy was a great listener. He was with us the entire way. You can call him anytime with question and you will get a very prompt answer. We will definitely use Billy in the future with any real estate needs that might arise. You cannot go wrong with Billy.

Dave K.October 26th, 2019

I've heard horror stories over the years in regards to realtors, I guess those people didn't have the right realtor because Billy Sutton did an amazing job, I was looking at houses 2 1/2 hours apart and one way or another he would always show up full of energy and full of knowledge. It's been two years and we still communicate with one another and I recommend him 100%

Jorge V.October 9th, 2019

Billy was a pleasure to work with. He's knowledgeable, hard working, and sold my home quickly for a great price. I highly recommend!

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Billy is a very knowledgeable real estate agent. If you have a home to sell, give him a call.

Patricia S.October 1st, 2019

Billy is incredibly knowledgeable in real estate and talked me through every step of the home buying process for my first home. I went into the process well informed and confident in my decision to buy, and would recommend Billy to anybody looking to purchase a home.

Nick M.September 29th, 2019

Lacey is an amazing person she listens to what you want in your dream home and takes the time to find the home that is perfect for you and your family. I totally recommend her to anyone.

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Lacey was a amazing realtor she worked tirelessly to find us a house that our family would love and she knocked it out of the park. Thank you so much for the hard work you put in.

Larry G.March 6th, 2020

I couldn't of asked for a better person helping us with our home! She's highly professional and made sure we found our dream home. Lacey always made time for us as clients and worked so hard to make everything go as smoothly as possible.

Stephanie D.March 5th, 2020

Lacey is amazing! She is so patient, understanding, honest and fair! She is everything you would want in a realtor but rarely find. The home buying and selling is a whole process that can be overwhelming and almost impossible if you don't have the right person on your side. She is so caring and pays attention to details you couldn't ask for anyone better to be there with you as you make such an important decision.

Cassi P.September 25th, 2019

I have known Lacey for over 15 years. She is one of the most detail oriented and hardworking people I know. I have watched her help people and over again!! I would recommend her to anyone!

Amanda B.September 25th, 2019

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