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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
Soil type is the single most important factor in a farmland parcel's long-term productivity and value. Understanding what soils are present before you buy helps you confirm the land can support your intended crops, validates or challenges the asking price, and avoids expensive post-purchase surprises.
Learn more about why farmers deciding on a land purchase should assess cropping history before making a final decision in the free guide Before You Buy: 4 Farmland Factors to Consider from FBN® Finance, or continue reading below to find out what farmers can discover from cropping history.
Different crops have specific soil requirements. Matching the soil types on a potential parcel to the crops you plan to grow is one of the clearest ways to evaluate whether the land will support your operation.
Key soil characteristics affecting crop suitability include:
pH levels: Most row crops (corn, soybeans, winter wheat) perform best at a pH of 6.0–7.0. Soils outside that range may require liming or other amendments before productivity improves — costs you need to factor into your offer.
Organic matter content: Higher organic matter improves water-holding capacity, nutrient cycling, and overall soil structure. It's a reliable proxy for long-term productivity potential and tends to correlate directly with land value.
Water-holding capacity and drainage: Soils that retain too much water (poorly drained) or too little (sandy, coarse-textured) both create yield limitations that require different management strategies.
Texture: The ratio of sand, silt, and clay affects tillage requirements, compaction risk, and how a field will respond to drought or excess moisture.
Soil type directly drives land value. Soils with higher productivity index scores are associated with higher per-acre prices because they produce more bushels per acre, consistently, over decades.
In Illinois, soil productivity is measured using the Illinois Soil Productivity Index (ILPI), which rates soils for suitability across major crops under best management practices. It's widely used by farmers, appraisers, and tax assessors in real estate transactions. Similar indices exist in other major farming states: Iowa uses the Corn Suitability Rating 2 (CSR2), Indiana uses a Productivity Index (PI), and USDA's National Commodity Crop Productivity Index (NCCPI) provides a standardized national measure. All of these condense complex soil science into a single comparable number, making it easier to evaluate parcels side by side.
When evaluating any parcel, ask for the soil productivity index score relevant to your state and compare it against other parcels you've considered and against the county average.
Understanding a parcel's broad soil classification helps you quickly gauge its potential before getting into productivity index scores.
Mollisols (Black prairie soils): The dominant soil type across the Corn Belt — Iowa, Illinois, Indiana, and parts of Kansas and Nebraska. These dark, fertile soils are rich in organic matter and consistently among the highest-productivity agricultural soils in the world. Mollisols in prime producing areas command the highest land values in the country.
Alfisols: Common throughout the Midwest, Mid-South, and parts of the Northeast. Generally productive for row crops but often lighter colored and lower in organic matter than Mollisols. There's significant quality variation within this order, so productivity index scores matter here more than classification alone.
Ultisols: Found primarily in the southeastern U.S. Generally acidic and lower in base saturation, requiring more intensive management (regular liming, fertilizer programs) to achieve high crop yields. Often valued lower than Mollisols of comparable acreage.
Entisols and Inceptisols: Less-developed soils found in sandy or recently deposited areas. Productivity varies widely. Sandy Entisols common in parts of the Great Plains and coastal states have low water-holding capacity and are typically valued lower than well-structured loam or silty soils.
Histosols (Organic/peat soils): High in organic matter but often requiring significant drainage management. Found in parts of the upper Midwest and Florida. Can be highly productive when managed correctly but carry drainage infrastructure requirements and costs.
Knowing which soil order dominates a parcel gives you a starting point; the productivity index and field-level soil data from USDA SSURGO fill in the specifics.
When you apply for a farmland loan, the lender's appraiser evaluates the land as collateral. Soil type and productivity index scores are central to that appraisal — they're the primary driver of estimated income-producing potential, which in turn drives appraised value.
Here's why that matters for your financing:
Higher-quality soils support higher appraised values. A parcel with Class I–II soils and a strong PI score will typically appraise higher, which means you can generally borrow more against it relative to the purchase price.
Lower-productivity soils may appraise below the asking price. If a seller is pricing a parcel with below-average soil as though the soil were premium, the gap between purchase price and appraised value is a problem that shows up at underwriting — not at closing. You'd have to cover that difference in cash or renegotiate under time pressure.
Lenders use productivity indices to stress-test income projections. If a parcel's soil PI is significantly below the county average, a conservative lender may apply a lower loan-to-value ratio. Knowing the soil data in advance lets you have a realistic conversation with your lender about what financing is achievable at your target purchase price.
Once you've confirmed the soil quality supports your plans and the price is right, FBN Finance can help you close. Our farmland loans are built for farmers — competitive rates, straightforward terms.
Apply for a Land Loan | Talk to an Advisor
If you’re looking for cropping history information before making a farmland purchase, AcreVision is an evaluation tool that is available for free to FBN members to help you get the insights you need to make an informed buying decision.
FBN’s innovative farmland evaluation system is 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.
This tool shows historical land use and cropping patterns derived from the Cropland Data Layer (CDL) published by United States Department of Agriculture National Agricultural Statistics Service (USDA-NASS). The CDL is a crop-specific land cover data layer created annually using moderate resolution satellite imagery. Land use and cropping history data are updated annually on AcreVision℠ in the first quarter of each calendar year when the USDA makes this data available.
Try AcreVision for free today by clicking here.
What soil type is best for farming? Mollisols — particularly those found across the Corn Belt in Iowa, Illinois, and Indiana — are widely considered the most productive agricultural soils in the United States. They are rich in organic matter, have good drainage and water-holding capacity, and consistently support high yields of corn, soybeans, and other row crops. That said, "best" depends on your operation: some specialty and vegetable crops prefer sandier soils, and many other soil types can be highly productive with the right management program.
How does soil type affect farmland value per acre? Soil type is one of the primary drivers of farmland value. Parcels with high soil productivity index scores command premium per-acre prices because they produce more bushels per acre consistently over time. A meaningful difference in a state's soil productivity index — say, 10–15 points on Iowa's CSR2 scale — can translate to hundreds of dollars per acre in market value. Understanding the productivity score of a target parcel and how it compares to local averages is essential for evaluating whether an asking price is justified.
What is a soil productivity index? A soil productivity index (PI) is a numerical score that summarizes a soil's suitability for crop production under best management practices. Different states use different systems: Illinois uses the ILPI, Iowa uses the CSR2, Indiana uses its own PI, and USDA's National Commodity Crop Productivity Index (NCCPI) provides a standardized national measure. All of these systems condense complex soil science into a single comparable number, making it easier to evaluate and compare parcels across a region.
How do I look up soil types on land I want to buy? The USDA Web Soil Survey (websoilsurvey.sc.egov.usda.gov) is a free public tool that provides detailed SSURGO soil data for any location in the United States. FBN's AcreVision tool (free to members) presents the same underlying data in a simplified, parcel-specific format alongside comparable sales, terrain comparisons, and cropping history.
Do lenders consider soil type when approving farm loans? Yes. When underwriting a farmland loan, lenders assess the land's income-producing potential as collateral. Soil productivity index scores are a key input in that assessment — higher-PI soils generally support higher appraised values and more favorable loan terms. Parcels with significantly below-average soil quality may receive more conservative loan-to-value ratios, which affects how much a lender will finance relative to the purchase price.
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