Hey RE monkeys, My grandmother is quite old and owns 35-40 acres of farmland in Rexburg Idaho, which is near Idaho Falls. My family is trying to estate plan, and the farmland is the only true asset that she owns. No one in my family understand anything financial (all blue collar individuals), so I'd like to help out to let them know what it's worth for estate planning.
How do you go about valuing farmland in Idaho? I'm completely new to this, and don't know how to value undeveloped land. for reference, it is not rural, it's 1 mile from a Walmart and 3.5 from the city center, if that helps.
Bump: does anyone know where to start?
Rexburg is prime potato land. Typically you'll see plenty of barley and wheat. I'm from Ririe and have family all over the valley-my dad has a few guesses about who your grandmother is haha :)
So anyway, irrigated acres in the area will go for up to 6k / acre -have seen more depending on scale/market/etc. Since it's being farmed rn by someone, I'd assume you're getting 1/3 of the revenue and the rest flows through the operators PnL. Depending on the ground quality, operator ability, and prices, this isn't that much $ in cash flow tbh.Sorry for the wall of text.
To answer your q, I'd say anywhere from 160k to 225k valuation wise.
The real answer is it gets appraised every 4 years so just use that # unless it's materially low. -can looks this up via Madison county assessor map
Thank you so much!
The other question on this--Does the valuation of the land change if it is sold to a developer, or someone that would not keep it as farmland?
See if Idaho has something like this in Iowa:
https://www.extension.iastate.edu/agdm/wholefarm/html/c2-70.html
There is probably an extension to one of the state’s public colleges that regularly does agricultural economics research in Idaho that can give you a decent ballpark to start at. If the acreage is being farmed, your grandma probably already has it leased out to a nearby farmer, and that lease may generate annual cash flows that your relatives would prefer to selling the land down the line.
might be easier said than done but do a comp analysis. Costar has data on like all recent sales as well as way more data points than you might think about most properties
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