If you own farmland in Iowa, but don’t live near it, farm it yourself, or plan to sell it anytime soon, you might be wondering: Why would I need a professional appraisal?
It’s a fair question. After all, many landowners associate the word “appraisal” with buying or selling property. But farmland isn’t like most real estate. It’s a long-term asset that can serve many different purposes over the course of your life and even after it.
At Stalcup Ag Service, we work with landowners all over the country who have Iowa farmland in their portfolio, many of whom inherited it from parents or grandparents. Some haven’t set foot on the property in years.
Others are actively involved but don’t live close enough to check in regularly. And nearly all of them want to protect the land and make good decisions about it.
That’s where a professional farmland appraisal comes in.
What Is a Farmland Appraisal?
A farmland appraisal is an independent, third-party estimate of your land’s current market value. It’s not a guess. It’s not a Zillow estimate. And it’s not based on what your neighbor’s cousin thinks the farm down the road is worth.
A certified farmland appraiser looks at a combination of factors, including:
- Soil productivity (like CSR2 ratings)
- Drainage and topography
- Local comparable sales
- Land improvements (tile, terraces, buildings, etc.)
- Access, location, and usage
In short, an appraisal is a professional opinion backed by data, maps, and firsthand knowledge of the land market in your area. It gives you a documented, defensible value—not just for selling, but for many other important financial decisions.
Why Appraisals Still Matter When You’re Not Selling
Even if you plan to hold onto your land for the long haul, or pass it down to your kids, a professional appraisal can help in more ways than you might think.
Here’s how.
1. Estate Planning and Inheritance
Farmland is often the most valuable asset in a family’s estate. If you’re trying to divide things fairly between siblings or heirs, knowing the true market value of the land is essential.
We’ve seen countless situations where having an up-to-date appraisal prevented conflict down the road. It gives everyone a clear understanding of what the land is worth and supports more equitable decisions, especially when one heir wants to farm and another doesn’t.
2. Probate and Estate Settlement
When a landowner passes away, the estate often needs to be appraised for probate or estate tax purposes. Attorneys, CPAs, and financial advisors frequently request professional appraisals during this process.
If you’re an executor or trustee handling a family farm, an appraisal helps you do your job right and helps avoid over- or under-reporting asset values to the IRS.
3. Step-Up in Basis for Taxes
One of the biggest financial benefits of inheriting farmland is the step-up in basis. This allows heirs to reset the property’s tax basis to its current market value.
Here’s the catch: the IRS wants documentation. A professional appraisal dated near the time of death supports that new basis and can significantly reduce future capital gains taxes if the land is ever sold.
4. Lending and Collateral
Need to take out a loan or set up a line of credit? Many banks require a farmland appraisal before they’ll use your land as collateral. Whether you’re planning improvements, funding another business, or just improving cash flow, an accurate appraisal strengthens your position.
5. Insurance Coverage
If you own a farm with buildings, bins, or other improvements, you’ll want to be sure your insurance policy reflects today’s value. A professional appraisal helps ensure your property isn’t underinsured or overinsured, which can save you money and protect you in case of damage or liability.
Accuracy Matters and Local Expertise Makes the Difference
Not all appraisals are created equal.
Online estimators and ballpark figures from neighbors might give you a rough sense of value, but farmland pricing is highly localized and nuanced. Even fields that are side-by-side can have different values depending on drainage, access, improvements, or CSR2 soil scores.
That’s where Stalcup’s team of certified appraisers stands out. Based in Iowa, we bring decades of boots-on-the-ground experience, access to current local sales data, and the ability to interpret land characteristics with precision.
We don’t just plug numbers into a formula. We walk the ground, review aerials, and deliver a detailed, written report you can rely on for family decisions, financial planning, and beyond.
What to Expect from a Stalcup Appraisal
If you’ve never had a farm professionally appraised before, the process is straightforward:
Initial consultation – We gather information about the property and understand your goals.
Site visit & research – Our appraiser visits the land, reviews soil maps, sales data, and other relevant documents.
Valuation & report – You receive a formal appraisal report, often with maps, market comps, and supporting data.
Support afterward – Have questions? Need help explaining the appraisal to siblings or an attorney? We’re here for that too.
Every appraisal we deliver is USPAP-compliant, which means it meets the national standards for accuracy and ethics.
Who Requests an Appraisal? (It’s Not Just Farmers)
We work with a wide range of landowners and professionals, including:
- Out-of-state heirs who’ve inherited farmland
- Retired farm families planning ahead
- Executors or estate administrators
- Accountants and attorneys
- Non-farming investors
- Insurance agents and lenders
If you’re unsure whether you “need” an appraisal, chances are, it can save you time, money, and stress down the road.
Protect Your Land. Plan Ahead. Know Its Worth.
Owning farmland is a privilege, but it comes with responsibilities. Whether you live five miles or five states away, understanding your land’s value is one of the smartest steps you can take.
We’ve helped Iowa families and landowners manage their farmland with confidence for over 75 years. A professional appraisal is just one way we help protect your land and your legacy.
Contact us today to schedule an appraisal or learn more about how we support non-farming landowners like you.