Agricultural property carries programmes and restrictions that do not exist for other real estate.
Preservation programmes. Development rights purchase and transfer programmes, and conservation easements, permanently restricting non-agricultural use in exchange for payment or tax benefits. These run with the land and must be identified in diligence.
Tax classification. Preferential assessment based on agricultural use rather than highest and best use, with recapture of the deferred tax on conversion. Recapture liability can be substantial and is a purchase price consideration.
Right to farm statutes protect existing agricultural operations from nuisance claims by neighbours where generally accepted practices are followed, and in many states preempt inconsistent local ordinances.
Farm leases. Cash rent, crop share and flexible arrangements, with provisions addressing conservation compliance, drainage, fertility, hunting rights, and termination notice — which in many states is set by statute with a specific date and form.
Drainage. Drain districts, tile systems and the obligations among adjoining owners, governed by state law that varies between civil law and reasonable use rules.
Federal programme eligibility including conservation and commodity programmes, which attach to the land and the operator and require attention on transfer.
Wetlands and highly erodible land determinations affecting programme eligibility and permitted practices.