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References
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
Want to Buy a Farm?
Why Invest in Farmland? (Wealth Management.com, Oct. 30, 2023)
As a non-correlated asset, farmland investors aren’t handcuffed to the uncertainty of the stock market. The farmland can continue to produce income and rise in value no matter the stability or instability of the current market. Since farmland has only become scarcer over the years, a trend that’s likely to continue, capital appreciation likely will continue to grow, as well.
5 Ways to Invest in Farmland (Bankrate, Jan. 30, 2023)
The capital needed to buy a farm may be quite significant. For instance, according to the USDA, the average farm size in 2021 was 445 acres. The USDA also reported an average cost of $3,800 per acre in 2022. Using these averages, you could expect an average purchase price of $1.69 million for a farm. Naturally, you may be able to get started with less if you can find the right opportunity.
Owning Farmland is Now Cool, Even if You Don't Farm (AgWeb, Feb. 1, 2023)
“They can't compete with a farm operator who will add the land to their operation, but they will buy top-quality ground that has a stable return of around 3%. This will hold, I think, even as interest rates rise because investors are looking for a place to put money outside of financial markets due to worries over U.S. debt, etc. This will tend to stabilize the market,” Walsten says.
How to Start a Farm: Beginning Farmers and Ranchers (United States Department of Agriculture)
USDA can help you get started or grow your operation through a variety of programs and services, from farm loans to crop insurance, and conservation programs to disaster assistance.
Financing Farm Property
Smaller Operating Loans Slow Lending Activity (Federal Reserve Bank of Kansas City, Oct. 18, 2023)
The number of new non-real estate farm loans was flat compared with a year ago while the average size shrank by nearly 20%. The amount of operating loans over $1 million dropped notably and the reduction in loan size contributed to the third consecutive quarter of declines in non-real estate farm loan volumes. Lending has softened alongside nearly two years of increases in farm loan interest rates that have put considerable upward pressure on financing costs.
Farm Loans: Best Options and How to Get One (NerdWallet, Jul. 20, 2023)
Like FSA farm loans, SBA loans offer long repayment terms and competitive interest rates. Plus, SBA loans have larger maximum funding amounts — up to $5 million.
How to Start a Farm: Find Land and Fund Your Operation (Farmers.gov)
As a new farmer or rancher, access to land and access to capital are probably your biggest challenges. Whether you are looking for a small amount of funding to acquire a few basic pieces of equipment, need a larger chunk of money to invest in scaling up your operation, or need financing to acquire land and infrastructure, USDA has a variety of loans and resources that can help you.
Farm Loan Programs (U.S. Department of Agriculture - Farm Service Agency)
The Farm Service Agency offers loans to help farmers and ranchers get the financing they need to start, expand or maintain a family farm.
Funding Resources (Loans/Grants) (Beginning Farmers)
This page contains comprehensive information about finding financial help for starting your farm business.
Agricultural Property Values
Farmland Holds Value in 2024 (Progressive Farmer, Dec. 21, 2023)
From 2020 to 2023, farmland values jumped 30% to 40% in Indiana, Illinois and Iowa, according to USDA. During that same period, cropland in Arkansas, Louisiana and Mississippi increased only 10% to 11%.
Factors Influencing Farmland Prices (Successful Farming, Sep. 18, 2023)
Farmers National Co.’s latest Regional Land Values Report looked at farmland sales data for high-quality farmland across 18 states. All saw the average sale price per acre increase between June 2021 and June 2022 and from June 2022 to June 2023. However, the rate of growth between 2021 and 2022 was higher for most states than in the past year.
Land Values 2023 Summary (U.S. Department of Agriculture, Aug. 2023)
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $4,080 per acre for 2023, up $280 per acre (7.4 percent) from 2022.
Hobby Farms
Loving the Lifestyle: Hobby Farms Increasing in Popularity (Fergus Falls Journal, Sep. 22, 2023)
Recent economic climate has played a part in the increase in hobby farms nationwide, but for others, it has been a reason to downsize with feed prices nearly doubling.
Everything You Need to Know to Start a Hobby Farm (House Beautiful, Apr. 21, 2023)
Before you buy acres of land, define what type of lifestyle you want. Will your farm have livestock and vegetables? Research how much land is required for livestock to thrive—most small animals like goats or chickens can live on an acre of land. If you plan to grow vegetables or sell eggs, start small. Go to your local farmer's market to learn how locals buy and sell too. Remember, your farm can always grow and evolve over time.
What are Hobby Farms – Hobby Farm Vs. Business Farm (Gardening Know How, Jan. 13, 2023)
A business farm is just that, a farm in the business of making money. That isn’t to say that a hobby farm may not or does not sell their produce, meat, and cheese, but it is not the primary source of income for the hobby farmer. Another difference between a hobby farm vs. business farm is size. A hobby farm is identified as being less than 50 acres.
Agrihoods
Are Agrihoods a Growth Opportunity? (Pro Builder, Dec. 11, 2023)
Although located mostly in the South and West, there are an estimated 200 agrihoods across the U.S. in at least 30 states, in rural communities to major cities, as Ed McMahon, a senior fellow of sustainable development at ULI, told Civil Eats, a nonprofit publication focused on sustainable food news.
Agrihood: CA's Largest Urban Farm That Combines Affordable Housing Opens in Santa Clara (ABC 7 News, Sep. 21, 2023)
More than a farm, Agrihood is also the site of affordable housing with a focus on senior and veteran residents. It provides not just a place to live and access produce, but also a community with farmers markets and gardening lessons.
A 750-Home Community with Car-Free Zones, a Farm and Lake is Coming to the Houston Area (Houston Chronicle, Feb. 28, 2023) E
Meristem aims to disrupt the typical master-planned community concept by clustering most of the homes together on smaller lots, enabling the developer to dedicate more than half the community to open space and neighborhood trails. Plans call for a 25-acre lake for swimming, fishing and kayaking; miles of trails; and 42 acres of farm and pasture for visitors to meander or buy fresh produce and eggs.
Useful Websites
Agricultural Statistics by State (National Agriculture Statistics Service)
State statistics, publications and news releases.
Agricultural Sustainability Institute (University of California, Davis)
We partner with farmers, ranchers, agribusiness, non-profits, policy makers, and local communities to ensure that our research and teaching respond to the needs of the people of California and the world.
American Farm Bureau Federation
The American Farm Bureau Federation is the Voice of Agriculture®. We are farm and ranch families working together to build a sustainable future of safe and abundant food, fiber and renewable fuel for our nation and the world.
American Society of Farm Managers and Rural Appraisers
ASFMRA is the premier organization for rural property professionals, focused on advancing the standards of the disciplines we represent through an unparalleled level of expertise and integrity.
Business Services (National Young Farmers Coalition)
We are actively developing new resources, trainings, and online tools for young and beginning farmers, including guidebooks on federal programs and regulations, in-person workshops and trainings, and a cooperatively farmer-owned software application to help solve fundamental marketing challenges.
Census of Agriculture (U.S. Department of Agriculture - National Agricultural Statistical Service)
The Census of Agriculture, taken only once every five years, looks at land use and ownership, operator characteristics, production practices, income and expenditures.
Farm Answers (Center for Farm Financial Management – University of Minnesota, U.S. Department of Agriculture – National Institute of Food and Agriculture)
Farm Answers is the USDA-NIFA beginning farmer and rancher (BFRDP) clearinghouse, providing resources to help you get started farming, as well as tools to help more seasoned producers succeed.
Farm Beginnings Program (Land Stewardship Project)
The Land Stewardship Project works on various fronts to ensure future generations of stewardship-minded farmers are successfully established on the land and in our communities. Whether you are dreaming of farming, in the process of establishing your own farm business, or have 10 years under your belt, LSP is here to support you and your farm.
Farm Business Toolbox (National Farmers Union)
Growing conditions and production practices present demanding challenges, but those are not the only skills today’s farmer must maintain. To thrive in changing markets, farmers must also operate with a high degree of business savvy. Farm business health can be divided into eight different topics for purposes of identifying a farm operation’s strong points and weak areas, and to direct efforts for business health improvement.
Service Center Locator (U.S. Department of Agriculture)
This web site will provide the address of a USDA Service Center and other Agency offices serving your area along with information on how to contact them.
Farm Loan Programs (U.S. Department of Agriculture - Farm Service Agency)
The Farm Service Agency offers loans to help farmers and ranchers get the financing they need to start, expand or maintain a family farm.
The REALTORS® Land Institute (RLI) elevates the level of professionalism in the land industry by providing all land professionals the expertise and camaraderie that are the foundation for becoming the best in the business.
Publication 225 (2023), Farmer's Tax Guide (Internal Revenue Service)
This publication explains how the federal tax laws apply to farming. Use this publication as a guide to figure your taxes and complete your farm tax return.
Resources (Cornell Small Farms Program)
Current information is essential to manage your farm and grow your business. The Cornell Small Farms Program has created a suite of resources based on these needs, ranging from production to policy and everything in-between.
Small Farm Funding Resources (U.S. Department of Agriculture - National Agricultural Library)
This guide contains information about issues to consider before starting a farming operation with links to full-text guides on how to start a farm business and develop business and marketing plans.
Regional Small Farms (Washington State University)
The Regional Small Farms Program supports small to mid-sized farms by leveraging the broad resources of a major university to resolve issues and create a positive food future for our region.
eBooks & Other Resources
eBooks
The Back to Basics Handbook: A Guide to Buying and Working Land, Raising Livestock, Enjoying Your Harvest, Household Skills and Crafts, and More (eBook)
The Backyard Homestead Seasonal Planner (eBook)
Buying Country Land (eBook)
Finding Good Farmland (eBook)
Green Guide: The Complete Reference for Consuming Wisely (eBook)
Mini Farming (Audiobook)
The Profitable Hobby Farm: How to Build a Sustainable Local Foods Business (eBook)
The Ultimate Guide to Growing Your Own Food (eBook)
The Ultimate Guide to Urban Farming (eBook)
The Weekend Homesteader: A Twelve-Month Guide to Self-Sufficiency (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Rural Property Valuation (Chicago, IL: Appraisal Institute, 2017) HD1393 .R864 2017
Journals Available through EBSCO (E)
Agricultural Research - Research articles on food, nutrition and aspects of farming and pest control published by the Agricultural Research Service, United States Department of Agriculture.
Farmers Weekly - News & views about the business of farming, and topical technical information from independent experts designed to help farmers manage their businesses more effectively.
Journal of the American Society of Farm Managers & Rural Appraisers – Articles represent a cross-section of happenings in the various agricultural professions.
Journal of Farm Management - Publishes articles that survey and report on agricultural business management, including topics such as production, marketing, agricultural merchandising, new developments, research, and successful achievements in agricultural business management.
Have an idea for a real estate topic? Send us your suggestions.
The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.