Upcoming Auctions & Current Listings

When Should you Consider a Farmland Appraisal?

by | Jul 20, 2026 | Wingert Insights

Many landowners are unsure when they need an appraisal or how it differs from a market evaluation prepared for a potential sale. Both can provide useful information, but they serve different purposes.

What Is a Real Estate Appraisal?

Under Minnesota law, a real estate appraisal is an analysis, opinion or conclusion related to an identified property or ownership interest. An appraiser develops an independent and unbiased opinion of value for a specific purpose and effective date.

For farmland, the appraiser may consider recent comparable sales, soils, drainage, productivity, access, improvements, land use, rental income, easements and other property characteristics. The appraisal report explains the property analyzed, the scope of work performed, and how the appraiser reached the final opinion of value.

An appraisal differs from a broker’s market analysis. A broker’s evaluation is often used to help a landowner understand the current market and prepare for a possible sale. A formal appraisal may be needed when an independent, documented opinion of value will be used for legal, tax, lending or ownership purposes.

When Might You Need an Appraisal?

Landowners commonly obtain appraisals for:

  • Estate planning or estate settlement
  • Gifting land or transferring ownership
  • Dividing property among heirs or other owners
  • Divorce, partnership dissolution or other legal proceedings
  • Financing or refinancing
  • Charitable contributions
  • Eminent domain or property disputes
  • Evaluating a potential purchase or sale

Ashley Sorenson

Trainee Real Property Appraiser

MEET ASHLEY

Estate-related work is one of the most common reasons farmland is appraised. An appraisal can provide a documented opinion of value for the estate, beneficiaries and their professional advisors. It may also assist with estate planning, asset distribution and future ownership decisions.

Understand Why You May Need an Appraisal

Before ordering an appraisal, identify why the value is needed and who will rely on the report. The intended use can affect the effective date, property interest being valued, report requirements and qualifications required of the appraiser.

An attorney, accountant, lender or other qualified advisor can help determine whether a formal appraisal is appropriate. Sharing the intended use with the appraiser at the beginning is a crucial step to ensure the assignment is structured correctly.

If you have questions about whether an appraisal may be appropriate for your land, I would be glad to learn more about your situation and help you determine the right place to begin.

This article provides general information and is not legal, tax or accounting advice. Landowners should consult their professional advisors about their individual circumstances.

Categories