As most people in the agriculture industry know, drainage concerns can be easily spotted visually and by reviewing historical aerial photography. After applying previous knowledge about a piece of land, an appraiser can determine a discount based on the severity of the drainage issues compared to other similar sales in the local area.
But did you know that increased drainage systems can enhance property values up to $2,500 per acre?
Appraisers view farmland through the eyes of potential buyers. Think of it this way- when a buyer is willing to pay more, the value will be reflected in the property’s appraisal. However, buyers will want proof from aerial photos that the new tile is functioning properly and has improved the drainage before paying more for the land. With proof of improved drainage, tile improvements can upgrade values by 10% to 20% over time.
Implementing tile truly is a long-term investment, but so worth it because you can also turn it into a higher land value by increasing cash rent. So if you are thinking of ways to increase your land’s value, drainage is a great option for you and for future generations to come.