What is a section of land?
A section is a standard unit of land used in the U.S. Public Land Survey System. One section generally contains 640 acres and is typically one mile by one mile, although actual boundaries can vary. Sections are commonly used when describing agricultural property.
How many acres are in a section?
A standard section contains 640 acres. A section can be divided into smaller units, such as half sections of 320 acres and quarter sections of 160 acres.
What is a quarter section?
A quarter section is one-fourth of a standard 640-acre section, or approximately 160 acres. Quarter sections are commonly used in legal descriptions of agricultural property.
What is a legal land description?
A legal land description precisely identifies a property’s location and boundaries for legal and real estate purposes. In Nebraska and other areas using the Public Land Survey System, descriptions commonly reference township, range, section, and smaller divisions of a section.
What is FSA?
FSA stands for the Farm Service Agency, a USDA agency that administers agricultural programs including farm loans, conservation programs, disaster assistance, and certain commodity and income-support programs. Local FSA offices maintain important information and records related to agricultural operations and farmland.
What is USDA?
USDA stands for the United States Department of Agriculture. The USDA oversees numerous programs and agencies related to agriculture, food, rural development, conservation, forestry, and natural resources, including the Farm Service Agency and Natural Resources Conservation Service.
What is the Farm Bill?
The Farm Bill is a large federal law that establishes policies and funding for numerous agricultural and food programs. It addresses areas such as farm programs, crop insurance, conservation, nutrition, rural development, and agricultural research. Farm Bill provisions can change when new legislation is passed.
What is crop insurance?
Crop insurance helps protect agricultural producers against certain financial losses caused by events such as low yields, weather-related damage, or changes in revenue, depending on the policy. Federal crop insurance programs are administered through the USDA’s Risk Management Agency and participating insurance providers.
What is prevented planting?
Prevented planting is a crop insurance provision that may provide coverage when a producer is unable to plant an insured crop by the applicable deadline because of an eligible cause, such as excessive moisture. Eligibility and payment requirements depend on the specific policy and circumstances.
What is a conservation reserve?
A conservation reserve generally refers to land enrolled in a conservation program, such as the Conservation Reserve Program (CRP), where agricultural production is restricted in exchange for payments and conservation benefits. The specific rules depend on the program and contract.
What is depreciation?
Depreciation is the accounting and tax process of allocating the cost of certain assets over their useful lives. For farmland owners and agricultural businesses, depreciation may apply to qualifying buildings, equipment, and other improvements, but generally not to the underlying land itself. Tax treatment should be discussed with a qualified tax professional.
What is a farm appraisal?
A farm appraisal is a professional opinion of a property’s market value based on factors such as comparable sales, income potential, soil productivity, location, improvements, and highest and best use. A licensed or certified appraiser can provide a formal appraisal. AgWest Land Brokers can also provide local market insight and comparable sales information.
What is title insurance?
Title insurance protects property owners and lenders against certain covered losses resulting from title defects, liens, ownership claims, or other issues that existed before the policy was issued. Title insurance is commonly part of a real estate transaction.
What is earnest money?
Earnest money is a deposit made by a buyer after entering into a purchase agreement to demonstrate good-faith intent to complete the transaction. The amount and conditions governing the deposit are established in the purchase agreement.
What happens at closing?
At closing, the buyer and seller complete the final steps of the real estate transaction. Documents are signed, funds are transferred, title is conveyed, and the transaction is officially completed. The closing process may involve a title company, attorney, lender, broker, and other professionals.
What does escrow mean?
Escrow is a process in which a neutral third party holds money, documents, or other assets until specified conditions of a transaction have been met. In a farmland transaction, an escrow or title company may handle earnest money and closing funds.
What is a land survey?
A land survey is a professional measurement and mapping of a property’s boundaries and other features. A survey can identify property lines, acreage, easements, improvements, and potential boundary issues. Whether a new survey is needed depends on the property and transaction.
What is a title search?
A title search is an examination of public records to determine who legally owns a property and identify potential issues such as liens, mortgages, easements, restrictions, or other claims affecting the title. Title searches are an important part of the real estate closing process.
What is a mineral right?
Mineral rights are the legal rights to extract or benefit from minerals located beneath or within a property. Mineral rights may be owned separately from the surface land, so buyers should determine whether mineral rights are included in a farmland transaction.
What are water rights?
Water rights are legal rights governing the use of water from sources such as groundwater or surface water. Water laws vary by state and location. In Nebraska, groundwater use is regulated through state law and local Natural Resources Districts, making water rights an important consideration when buying or selling farmland.
What is an easement?
An easement is a legal right that allows someone to use a portion of another person’s property for a specific purpose. Common examples include access, utility, drainage, pipeline, and irrigation easements. Easements remain important considerations when evaluating the use and value of farmland.
What is right-of-way?
A right-of-way is a legal right to pass through or use a portion of another person’s property for a specific purpose. Roads, public utilities, pipelines, railroads, and access routes may involve rights-of-way. The specific rights and restrictions are established by the applicable agreement or legal document.
What is a wind lease?
A wind lease is an agreement that gives a wind energy developer certain rights to use or develop portions of a property for wind energy facilities. Depending on the agreement, it may address turbines, roads, transmission lines, payments, construction, maintenance, and other rights. Landowners should have an attorney review any proposed wind lease before signing.
What is a solar lease?
A solar lease is an agreement allowing a solar energy developer to use part of a property for a solar energy project. The agreement may cover the development area, access roads, electrical infrastructure, payments, construction, maintenance, and eventual removal of the equipment. Landowners should have an attorney review the agreement before signing.
Can solar panels affect farmland value?
Yes. Solar development can affect farmland value in different ways depending on the location, lease terms, project size, agricultural productivity, and buyer demand. A long-term solar lease may provide additional income, while development restrictions or reduced agricultural use may affect the property’s marketability. AgWest Land Brokers can help landowners evaluate how a proposed solar project may affect the real estate.
How do wind turbines affect land value?
Wind turbines can affect farmland value differently depending on the property, location, lease terms, turbine placement, income potential, and buyer preferences. Wind development can provide landowners with additional lease income, while turbines, roads, easements, and other infrastructure can affect agricultural operations and future buyers. AgWest Land Brokers can help landowners understand the real estate considerations associated with wind development.