How Does Irrigation Affect Farmland Value?

September 15, 2023 3 min read FBN

How Does Irrigation Impact Land Production and Value?

Irrigation often impacts land production and value by:

1. Increasing Crop Yield

Proper irrigation ensures that crops receive adequate water, which is essential for their growth and development. With sufficient water supply, crops can reach their full potential, resulting in higher yields and increased productivity

2. Mitigating Drought

Irrigation helps mitigate the effects of drought by providing a consistent water supply to crops, even during dry periods. This reduces the risk of crop failure and ensures a more stable and reliable harvest, which can positively impact the land’s value.

3. Enhancing Crop Diversity and Flexibility

Irrigation allows farmers to grow a wider range of crops, including those that require more water or have specific water requirements. This diversification can enhance the land’s productivity and profitability, as farmers can choose crops that are in high demand or have better market prices.

4. More Effectively Utilizing Farmland

Irrigation can make previously unproductive land suitable for agriculture. By providing water to arid or semi-arid regions, irrigation expands the potential for farming and increases the overall land value.

5. Demonstrating Responsible Land Stewardship

Proper irrigation practices promote sustainable land management by minimizing water waste and reducing the risk of soil erosion. This demonstrates responsible land stewardship, which can positively influence the land’s value and appeal to potential buyers.

6. Serving as a Long-Term Investment

Implementing an efficient irrigation system is a long-term investment that can increase the land’s value over time. Well-maintained irrigation infrastructure, such as drip irrigation or precision sprinklers, can enhance the land’s productivity and attract buyers looking for sustainable and efficient farming practices.

It’s important to note that the specific impact of irrigation on land production and value can vary depending on factors such as soil type, climate, crop selection, and the efficiency of the irrigation system. Consulting with local agricultural experts or agronomists can provide more tailored advice based on your specific location and farming practices.

Fund Farm Improvements with FBN® Finance

If incorporating a new irrigation system into your ag operation seems like a savvy investment but a potential challenge given your current financial situation, consider a farmland loan from FBN Finance.

Farmland financing is not limited only to purchasing land; it can also be used for financing many different improvements on these lands. Leveraging the equity in your land can improve your access to working capital and give you additional liquidity for operational needs.

With more than 1,700 farmers served and over a billion dollars in funds committed to date, the FBN Finance team understands that choosing a financing partner is an extremely important decision for your ag operation. Plus, with instant approvals* for qualifying applicants, we’re ready to get you the funding you need, when you need it.

Backed by competitive rates and an array of helpful ag financing solutions, our loan agents are ready to walk you through the application process to help you secure a financing solution that fits your unique operation.

Also Read: Major decisions related to agriculture under India’s G20 presidency

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