Data is an investor’s most valuable advisor. It removes the emotions and guesswork from investing, so that they can make informed decisions. When it comes to farmland investing, the type of data you should rely on to make informed decisions is soil and yield data.
In this article, we’re breaking down why soil and yield data matter when investing in farmland and how to find it.
Smart Farmland Investing Starts With Data
The most important question you can ask yourself before investing in farmland is: What does the data say? That simple question uncovers the complexities of what a valuable farmland looks like. And that value starts with the soil and past yields.
Let’s break them down:
Understanding Soil Data
What can be grown, how much can be grown, and if that growth will end in profitable yields, all depend on soil quality. The physical and chemical makeup of the land is the lifeline of farmland production. That’s what soil data reveals. When assessing soil data, it’s important to look at:
- Soil type
- Soil productivity index
- Organic matter
- PH level
- Drainage Class
- Erosion Risk
- Typography
- Cation Exchange Capacity (CEC)
This data gives investors a science-backed viewpoint of soil quality and potential production of the land.
Understanding Yield Data
Yield data gives investors a year-over-year, crop-by-crop analysis of the land’s production. That includes:
- Bushels per acre by crop
- Rotation history
- Yield variability and trends
- County and state benchmark comparisons
Both soil and yield history influence whether a piece of land is underperforming, average, or outperforming the surrounding farmland, making them key components to the true value of the land. Investors who prioritize them are prioritizing profitability.
Avoid Making A Risky Farmland Investment Using Soil and Yield Data
It’s simple. Investors who dig deep into soil and yield data before buying farmland increase their revenue potential and decrease the risks that can erode their returns.
When investing in farmland, soil and yield data help you:
- Eliminate underperforming farmland
- Leverage historical trends to predict productivity
- Identify red flags (low soil productivity, poor drainage, unbalanced pH levels) that waste your time and capital
The good news is that soil and yield data aren’t hard to come by. Tools like Farmland Intel deliver insight into the value of multiple properties in minutes, so that investors can quickly analyze the data they need to make confident decisions.
Data Is How You Stay Competitive When Investing in Farmland
There’s only so much land, and even less with the kind of quality soil, sufficient water access, and a strong yield history that drives real returns. Investors who want to stay competitive use soil and yield data to move faster, act smarter, and invest with more confidence.
Farmland Intel makes accessing that data easier. Through tools that highlight soil scores, historical data, and performance benchmarks, Farmland Intel helps investors identify high-performing land and avoid costly mistakes, leading to better investments.
