How Does Irrigation Affect Farmland Value?

FBN Network

May 01, 2024

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Irrigation is a crucial factor that significantly impacts your operational productivity. Providing crops with essential water supply, irrigation ensures optimal growth and development to maximize yields and optimize ROI. 

It can also often increase the value of your farmland.

When considering selling your property, think about how the six ways in which pre-existing irrigation systems will appeal to prospective buyers.

How Does Irrigation Impact Land Production and Value?

Irrigation optimizes land production and value because it: 

1. Increases Crop Yield

Proper irrigation ensures that crops receive adequate water, which is essential for successful growth and development, achieving higher yields and increased productivity.

2. Mitigates Drought

Irrigation helps mitigate the effects of drought by providing a consistent water supply to crops, even during dry periods. This reduces the risk of crop failure and ensures a more stable and reliable harvest, which can positively impact land value.

3. Enhances Crop Diversity and Flexibility

Irrigation enables you to grow a wider range of crops, including those that require more water or have specific water requirements. This diversification can enhance land productivity and profitability, as you have the option to choose crops that are in high demand or have better market prices.

4. More Effectively Utilizes Farmland

Irrigation can make previously unproductive land more suitable for agricultural use. By providing water to arid or semi-arid regions, irrigation expands the potential for farming and increases the overall land value.

5. Demonstrates Responsible Land Stewardship

Proper irrigation practices promote sustainable land management by minimizing water waste and reducing the risk of soil erosion. This demonstrates responsible land stewardship, which can positively influence the land's value and appeal to potential buyers.

6. Serves as a Long-Term Investment

Implementing an efficient irrigation system is a long-term investment that can increase the land's value over time. Well-maintained irrigation infrastructure, such as drip irrigation or precision sprinklers, can enhance the land's productivity and attract buyers looking for sustainable and efficient farming practices.

It's important to note that the specific impact of irrigation on land production and value can vary depending on factors such as soil type, climate, crop selection, and the efficiency of the irrigation system. Consulting with local agricultural experts or agronomists can provide more tailored advice based on your specific location and farming practices.

Fund Irrigation Installation and More Farm Improvements with FBN® Finance

If incorporating a new irrigation system into your ag operation seems like a savvy investment but a potential challenge given your current financial situation, consider a farmland loan from FBN Finance. 

Farmland financing is not limited only to purchasing land; it can also be used for financing many different improvements on these lands. Leveraging the equity in your land can improve your access to working capital and give you additional liquidity for operational needs.

With more than 2,400 farmers served and two billion dollars in funds committed to date, the FBN Finance team understands that choosing a financing partner is an extremely important decision for your ag operation. Plus, with instant approvals* for qualifying applicants, we’re ready to get you the funding you need, when you need it. 

Backed by competitive rates and an array of helpful ag financing solutions, our loan agents are ready to walk you through the application process to help you secure a financing solution that fits your unique operation.

Click here, call 866-551-3950, or complete the form below to get started. 

*Subject to final review and verification

© 2014 - 2024 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network”, “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc. This content was written by Norm℠, reviewed and edited by Mikaela Tierney.

This content was generated with the assistance of NormSM, FBN’s artificial intelligence (AI) Ag Advisor, based on a dataset of information containing general industry best practices and research. The AI model did not use specific external sources to generate this content. Our process involves using AI to aid human subject matter experts with the initial drafting and/or refinement of content. The information and content provided is believed to be reliable, but its accuracy is not guaranteed. The content is provided for informational purposes only. It is not intended to be a substitute for specific agronomic, business, or professional advice, and should not be relied upon as such. Neither Farmer's Business Network Inc. nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in the material and any liability therefore is expressly disclaimed. If you have any questions or feedback about the content, please feel free to contact us or visit our FAQ.

Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, a borrower must be a member of Farmer’s Business Network, Inc., and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify. NMLS ID: 1631119.

The material provided is for information purposes only. It is not intended to be a substitute for specific professional advice. Neither Farmer’s Business Network nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in the material and any liability therefore is expressly disclaimed. 

FBN Network

May 01, 2024

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