Page 11 - LandBroker MLS Magazine Spring 2020

Check with the county tax assessor to determine whether If you need water for crop irrigation, make sure you know Farm Credits Specialize in:
your potential purchase qualifies for a special use exactly what irrigation rights you have and confirm that
valuation, commonly called an ag exemption. If it has they transfer with the land. Real Estate Purchase & Improvement Loans
an existing exemption, learn how to maintain it. Farm Credit Banks offer a wide range of products and competitive rates,
Understand the Property’s Mineral Rights whether you are buying a farm or recreational land, refinancing a current
Be aware that some commercial lenders require the Mineral interests are an extremely important and a mortgage, expanding your operation or making long-term improvements.
buyer to rescind a special use valuation before making valuable asset. If minerals are a part of the purchase, it
a rural home loan. But this is not so at most Farm Credit is prudent to have the mineral title searched to learn who Features include:
Banks. owns the minerals. • Fixed and Variable Interest Rates • Reasonable Closing Costs
• Interest Rate Lock-In Options • Terms of 5 to 30 Years
“We can discuss the tax advantages and how to Some states do not permit severing minerals from • Monthly, Quarterly, Semi-Annual and Annual Payment Options
maintain a special tax valuation, whether it be for wildlife the land. In others, such as Texas and New Mexico,
or agriculture,” says Brett Riff, a senior branch manager mineral ownership can be severed from land ownership Farm and Ranch Loans
Our real estate loans are custom-tailored to your needs. We are the
with Capital Farm Credit’s Hondo office. “We may even indefinitely. industry leader in loans for agricultural property purchases, refinancing
know neighboring farmers or ranchers who could lease In Texas, the mineral estate is dominant over the surface and improvement projects.
the land and help you keep your special tax valuation.” • Farmland, Ranchland and Timberland • Barns and Facilities
estate. That means mineral owners or lessees can enter
Know Your Water Rights property to extract the minerals at any time. However, • Wells and Irrigation Systems • Roads and Fences
Water is critical for wildlife, and access to water is they must compensate the surface owner for damages, • Ponds and Stock Tanks • Land Leveling
important for every wildlife manager. right-of-way access or other impacts. Mineral rights vary Rural Property Loans
greatly across the United States so it is imperative to do We offer flexible financing options for the purchase, refinance and improvement
Before buying, learn about wells, surface impoundments, your research before purchasing. of land where you can enjoy country living and the great outdoors.
watersheds and government regulations. Ask about the • Recreational Property – Including Hunting Land
availability and quality of water, and test any well water Furthermore, a lease executed by the seller remains in • Retirement Property •Rural Homesites
for salts and potability. force even if the minerals transfer to the buyer. Be sure to • Cabins and Barndominiums •Construction and Renovations
ask about mineral exploration before purchasing. • Property Improvements
Rights to surface water and groundwater vary
dramatically by region. In Texas, the “right of capture” Long-Distance Purchase Pointers Operating Loans
means that whoever owns the land surface owns the Here are a few more tips to keep in mind. Whatever type of agricultural operation you might have, an operating loan from
right to drill for groundwater. Surface water belongs to • Be sure your broker fully understands your goals Farm Credit can provide the capital you need to make the most of your business.
the state but may be used under permit. for the property.
• If doing a 1031 tax-deferred real estate exchange, We understand agriculture, and live in the rural communities we serve.
In New Mexico, where the state administers water rights, work with a qualified exchange intermediary to Our experienced loan officers can customize a loan for your operation.
landowners don’t have to pay for water. However, they identify the new property before selling the old.
do have to pay for pumping or delivering water via ditch • Check with the state highway department for rules Competitive and flexible financing options include:
system or dam. on highway access from your property. “Line of sight” • Revolving Lines of Credit • Competitive Variable Rates
• Cash Back Through our Patronage Dividend Program
In Louisiana, landowners own the groundwater and issues may restrict your access.
surface water, with the exception of public waterways • Small tracts are typically surveyed; large ranches Leasing
We offer competitive lease terms and structures customized to fit each
such as the Mississippi River. are not. A broker or local title company can help agricultural producer’s needs, including:
access legal descriptions, survey reports, maps
If all you need is supplemental water for wildlife, you and aerial photos. You can never have too much • Vehicles • Farm and Ranch Equipment
have three main options: information about a property purchase, and a current • Specialized Equipment
(Including Timber, Aquatic, Solar and Winery-Related)
• Surface impoundments of rainwater survey and legal description are just one more • Storage Facilities
• Water wells protection when it comes to your purchase.
• Wildlife “guzzlers” that capture, store and dole out • Look at the property in person and bring along a Agribusiness Loans
rainwater in small troughs trusted advisor that knows and understands property Farm Credit is a financing partner with extensive capital markets experience

Supplemental water should be clean, dependable and in that area. and funding capacity, as well as unmatched expertise in structuring complex
credits. In addition to financing individual agribusiness owners, we also
easily accessible. Good cover gives wildlife a sense of • Have a local attorney draft your closing handle large corporate agribusiness loans and correspondent loan
security, and low troughs or mud holes are accessible to documents. participations throughout the United States.
wildlife of all sizes. Do your homework ahead of time and you will be We offer:
Distributing water via poly pipe and PVC pipe is rewarded with years of enjoyment from your land – and • Senior Loans (Operating and Term) –
more cost-effective than building a new pond or well. for all of your rural lending needs, make sure to check whether it’s a feed lot, feed mill, large dairy, farm supply, lumber mill,
Providing water every half mile also concentrates game. out your local Farm Credit lender. grain elevator or any other ag processing or manufacturing company,
If you have feral hogs, give them free access to water, Farm Credit is the lender that can help you succeed
but protect the pipes and valves. Please see our Farm Credit Index on page 73. • Non-Credit Retail Banking Products –
Provided Through a Third-Party Affiliate
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