4 Questions to Consider Before Buying Farmland


The growing interest for farmland has driven land values to record highs in several regions. Buying quality farmland for crop production or recreation is a great investment for individuals with high total assets and surplus income or even those who only want homesteading.

 If you’re planning to buy farmland, then you should take into consideration these questions to come up with the right decision:

1. How much land do you need?

One of the first things to consider is how many acres of land you desire to have. Knowing how much land you need can help you plan out your budget and in which areas to buy. You can choose whether to purchase land in rural or urban areas. For rural areas, you can look for rural land for sale on Gumtree.

The land area also determines your farm size:

  • If you want just small family farmland for small-scale farming, then an average of around 231 acres is enough.

  • If you want a vast family farmland such as for animal raising, then an average of 1,421 acres is needed.

  • If you want a very large farm for crop production, then an average of 2,086 acres is required.

2. What would you do with your farmland?

Part of knowing how much land you need is knowing your purpose for acquiring farmland. You must know what you’re going to do with your farmland before deciding to buy one. You can be a small investor who wants to delight in the traditional sense of owning a land farm while making money. Your options may include the following:

  • Timber farming

  • Growing gourmet medicinal herbs and mushrooms

  • Creating vegetable gardens or vineyards

  • Having a mineral development land

  • Using your farmland for recreational activities

These undertakings may ease your capital restraints while allowing you to enjoy your land and generate an income at the same time.

On the other hand, if you want to utilize vast farmland, then farming crops or raising animals will be best for you. However, you’ll need to develop quality pasture for your animals to eat if you want to grow animals for beef cattle or dairy cattle. You may also need to start looking for a great farm shed to store your produce, equipment, or animals. A vast farmland can provide you with greater income if managed well.

3.  Where would its location be?


Ideally for starters, the farm you choose must be located within your country or region of residence for your convenience. You need to look for farmland that is situated in an area with other farms, too. This is to make sure that the farmland is established away from any harm that could affect the quality of the crops you’ll grow or the animals you’ll raise.

Here are other considerations for your site selection:

  • Identify the type and quality of soil, fertility, organic matter content, and penetration. Choose a land full of organic material and can efficiently transport water and nutrients to the crops in order to grow organic crops.

  • Choose land with drainage because plants need well-drained soil. Allowing water to drain away is also very important when you’re raising animals because they need a dry and comfortable environment.

  • Consider biotic factors, pest, and diseases. Prefer farmland that is adjacent to forested areas, but avoid areas with severe pest and disease history.

  • Look for an area that’s not frequented by typhoons, flood, and volcanic eruption because these can lead to total loss and failure of your investments.

  • Choose farmland with an accessible location, especially when your product is projected to be marketed. It should be accessible to the market for lesser cost and convenience.

4.  How are you going to pay for the farmland?

You should wisely consider your financing options and future cash flows. If you think of paying the land in cash, then it’d be better if you have the essential funds available. Another good option to pay for it is to obtain financing so you can utilize your cash on hand as capital for your business operations.

Focusing on your income-producing investments and managing them well can generate high profits even after deducting your interest payments. To better understand the financial needs of acquiring farmland, consulting legal and financial advisors is recommended.


The questions above will serve as your guide in buying farmland. Planning well before taking actions is a must so you can acquire and invest in a farmland that suits your needs. You can make the most out of your farmland by planning out things carefully. Therefore, before jumping into a big purchase, you must be able to answer all the necessary questions.