What should farmland owners consider before accepting a utility transmission easement?
In this RFD-TV Market Day Report interview, Daniel Boring, CRE, MAI, ARA, ASA, Senior Vice President with Kidder Mathews Valuation Advisory Services, discusses utility transmission easements, conservation easements, used farm equipment values, and the pressures affecting agricultural landowners across the Southeast.
Daniel explains why landowners should evaluate the impact of a transmission easement on the entire property, not just the land located within the easement area. Depending on its location, an easement may affect irrigation pivots, aerial spraying, access, potential building sites, and other uses of the farm. He recommends understanding the full terms of an offer and evaluating the property before and after the easement to better understand its overall impact.
Topics discussed in this video include
Farmland Conservation Easements
Daniel discusses Georgia’s farmland conservation program and the role conservation easements can play in protecting working agricultural land while preserving its value. He also explains the differences he is seeing between traditional family-farm easements and other conservation easement transactions, along with the importance of state and federal funding.
Utility Transmission Easements & Farmland Value
As utility infrastructure expands across the Southeast, agricultural landowners may receive easement offers affecting their property. Daniel explains why landowners should carefully review the terms of an offer and consider how a transmission easement may affect farm operations, access, development opportunities, and the value of the remainder of the property.
Evaluating Easement Compensation
The impact of an easement can extend beyond the specific acreage being acquired. Daniel discusses the importance of evaluating the farm before and after an easement and recommends working with an experienced attorney and obtaining a thorough appraisal analysis before making a decision.
Used Farm Equipment Values
Used agricultural equipment values continue to face downward pressure. Daniel discusses national equipment markets as well as specialized regional equipment, including peanut harvesters and cotton equipment, and how lower farm income and additional farm sales are affecting equipment values.
Cattle, Drought & Southeast Pasture Values
Strong cattle markets, drought conditions, and rising feed, water, and operating costs continue to create competing pressures for producers. Daniel discusses what these conditions could mean for pasture, ranch, and agricultural land values across the Southeast.
Key Takeaways
- Landowners should understand the full terms and property-wide impact of a utility easement before accepting an offer.
- Transmission easements can affect farm operations, access, development potential, and the value of the remaining property.
- A before-and-after appraisal analysis can help evaluate the broader impact of an easement.
- Conservation easements can provide opportunities to protect working agricultural land, but structure and funding matter.
- Used farm equipment values continue to face pressure, particularly for specialized equipment with limited regional markets.
- Drought and rising operating costs remain important considerations for cattle producers and Southeast pasture and ranch properties.
This discussion is relevant for landowners, agricultural lenders, rural appraisers, farm managers, agricultural consultants, and other professionals involved in agricultural real estate and rural property markets.
About Daniel Boring
Daniel Boring, CRE®, MAI, ARA, ASA is a Senior Vice President with Kidder Mathews Valuation Advisory Services and a senior member of the firm’s Land, Agribusiness & Natural Resources group. His valuation and advisory experience includes agricultural real estate, natural resources, machinery and equipment, and other complex assets. Daniel joined this Market Day Report interview through the American Society of Farm Managers and Rural Appraisers (ASFMRA), where he holds the ARA designation.
Learn more about Daniel Boring and Kidder Mathews Valuation Advisory Services.
Read RFD-TV’s original coverage.
About This Interview
This interview was originally conducted and aired by RFD-TV on Market Day Report and coordinated through the American Society of Farm Managers and Rural Appraisers (ASFMRA). Reposted by Kidder Mathews with permission.