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This article is part of FBN Finance's farmland evaluation series. The four key factors to evaluate before buying land are: Soil Type | Comparable Sales | Cropping History | Terrain Comparisons
Comparable sales — often called "comps" — are recent transactions involving similar properties in the same area. When buying farmland, they serve as your primary tool for determining whether an asking price is reasonable, identifying negotiation leverage, and understanding how local land markets are trending. Without comparable sales data, you're evaluating price in a vacuum.
Download the free guide Before You Buy: 4 Farmland Factors to Consider from FBN® Finance to learn more about how to use comparable sales data when determining whether to make a land purchase, or keep reading below to learn about interpreting comparable sales information.
By analyzing recent comparable property sales, farmers gain a data-driven baseline for the market value of land in their target area. According to USDA NASS data, average U.S. farmland values have risen steadily in recent years, with Corn Belt cropland regularly trading at $8,000–$12,000+ per acre depending on soil quality, location, and local market demand. But national averages are nearly meaningless for an individual purchase decision — local comps are what matter.
Comparable sales help you answer the most fundamental question in any real estate transaction: Is this price fair?
Ensure comparable sales are in the same or similar area as the land you're considering. Even within a single county, values can vary meaningfully based on proximity to grain elevators, ethanol plants, or livestock markets; road and field access; and local infrastructure quality. A comp from 50 miles away may not accurately reflect your target parcel's market.
Look for comparable sales with similar acreage and land characteristics, including soil quality, topography, access to water, and any on-site improvements or structures. A 320-acre parcel with irrigation infrastructure is not a clean comparable to a dryland parcel of the same size, even in the same township.
Use recent sales — ideally within the past 12–18 months. Farmland markets can move quickly in response to commodity prices, interest rates, and local demand. Sales from three or four years ago may significantly understate or overstate current market conditions.
No two parcels are identical. When a comparable sale has meaningfully different characteristics — larger or smaller, better or worse soil, additional drainage tile, buildings — adjust your value estimate accordingly. A licensed appraiser will make these adjustments formally; as a buyer, you should work through them informally before you make an offer.
Once you've identified three to five solid comps, calculate the implied price-per-acre range. If the parcel you're considering is priced significantly outside that range — say, 15% or more above the top of the comparable sales — you have a factual basis for negotiating or reconsidering.
Suppose you're evaluating a 200-acre corn and soybean farm in central Iowa, listed at $11,500 per acre ($2.3M total). You identify four recent sales of comparable parcels in the same county:
180 acres, similar soil, sold for $9,800/acre
240 acres, Class B soils, sold for $9,200/acre
195 acres, similar to target, sold for $10,100/acre
210 acres, slightly better soil, sold for $10,400/acre
The comparable sales range of $9,200–$10,400/acre suggests the $11,500 asking price is 10–25% above recent market. That's a meaningful data point — either the seller is pricing in something the comps don't reflect (improvements, unique access, premium water), or there's negotiation room. Comparable sales data gives you the evidence to have that conversation objectively rather than by instinct.
This is one of the most overlooked aspects of the comparable sales process — and one of the most important for buyers financing their purchase.
When you apply for a farmland loan, your lender requires a formal appraisal. That appraisal is built almost entirely on comparable sales. The appraiser identifies recent transactions involving similar properties, makes adjustments for differences, and derives an estimated market value for the subject parcel.
If the agreed purchase price is significantly above the appraised value, your loan may not close at that price. Lenders generally will not lend above appraised value, which means you'd have to cover the difference in cash or renegotiate with the seller — often under time pressure after you're already under contract.
Doing your own comparable sales analysis before you make an offer helps you avoid this situation. If your research suggests the property is priced above market, you can negotiate down before you're legally bound — rather than discovering the problem at appraisal.
If comparable sales confirm the price is fair, the next step is securing competitive financing. FBN Finance offers farmland loans built for farmers, with straightforward terms and no prepayment penalty.
Apply for a Land Loan | Talk to an Advisor
Comparable sales should not be the sole factor in your decision. Agricultural potential, soil quality, cropping history, terrain characteristics, water access, and your own financial position all factor in. Consulting with a licensed appraiser or agricultural real estate professional is advisable for significant purchases.
For a comprehensive walkthrough of all four key evaluation factors, download FBN Finance's free guide: Before You Buy: 4 Farmland Factors to Consider.
If you’re looking for comparable sale information before making a farmland purchase, FBN’s innovative evaluation tool includes insights to help you make an informed buying decision.
AcreVision, which is available for free to FBN members, is an farmland evaluation system designed to assist farmers in making informed decisions about potential land purchases by providing vital insights into specific farmland parcels. This information includes soil types, comparable sales, terrain information and other details.
Try AcreVision for free today by clicking here.
What are comparable sales in farmland buying? Comparable sales (or "comps") are recent transactions involving similar farmland parcels in the same geographic area. Buyers, sellers, appraisers, and lenders all use comps to estimate the fair market value of a specific parcel. They provide an objective, data-driven basis for evaluating whether an asking price is reasonable and for identifying negotiation leverage.
How do I find comparable farmland sales in my area? Comparable farmland sales can be found through county assessor records (public in most states), agricultural real estate agents with local market knowledge, the USDA NASS Land Values report, and tools like FBN's AcreVision, which aggregates comparable sale data free for members.
How recent should comparable sales be when evaluating farmland? Sales within the past 12–18 months are most relevant. Farmland values can shift significantly with changes in commodity prices, interest rates, and local demand — so older sales may not accurately reflect current market conditions.
Do lenders use comparable sales for farm loan appraisals? Yes. When a lender underwrites a farmland loan, they require a formal appraisal based primarily on comparable sales of similar nearby properties. If the purchase price exceeds the appraised value, the lender will typically not lend above it — making pre-offer comparable sales analysis a critical step in the buying process.
What if no comparable sales exist near the land I want to buy? In thinly traded rural markets, finding close comps can be challenging. In those cases, a licensed appraiser with local agricultural real estate experience will typically expand the search radius or make time adjustments for older sales. This is one reason to work with a lender — like FBN Finance — that has deep experience in agricultural real estate.
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