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3 Things to Consider When Purchasing an Agricultural Property

Land Characteristics and Suitability: 

  • Soil Quality and Productivity: Different crops have different soil requirements. You'll need to assess the soil quality of the land to ensure it can support the crops you want to grow. This may involve obtaining soil samples and having them tested by a qualified lab. 

  • Water Availability and Irrigation: Ensure there's a reliable source of water for your crops. This could be from a river, stream, or underground aquifer. You'll also need to consider if irrigation will be necessary and factor in the cost of installing and maintaining an irrigation system. 

  • Topography and Drainage: The slope and layout of the land can impact drainage, erosion, and the types of crops that can be grown. Consider the property's topography and ensure proper drainage to avoid flooding or waterlogging. 

Financial Considerations: 

  • Loan Eligibility and Terms: Carefully review Pure Funding Mortgage's loan requirements and terms to ensure you qualify for the loan and understand the interest rate, repayment schedule, and any fees associated with the loan. 

  • Develop a Business Plan: Creating a comprehensive business plan is essential for any agricultural venture. This plan should include your projected income and expenses, marketing strategy, and funding needs. Having a solid business plan will not only help you secure financing but also increase your chances of success. 

  • Hidden Costs: Factor in additional costs beyond the purchase price of the land, such as property taxes, insurance, equipment, repairs, and labor. 

Legal and Regulatory Issues: 

  • Zoning and Land Use Restrictions: Research the property's zoning designation and any restrictions on land use that may apply. These restrictions could limit the types of crops you can grow or the structures you can build on the property. 

  • Water Rights: In some areas, water rights are separate from land ownership. Investigate water rights associated with the property and ensure they are sufficient for your agricultural needs. 

  • Environmental Regulations: There may be environmental regulations that apply to agricultural activities, such as pesticide use or manure management. Be aware of these regulations and ensure you can comply with them. 

By carefully considering these factors, you can increase your chances of success when purchasing agricultural property with Pure Funding Mortgage. Remember, it's wise to consult with a qualified agricultural professional and real estate attorney throughout the process. 

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