Michigan Soil Health Appraisal Methodology & Pilot Overview

The appraisal process is critical to the functioning of the agricultural sector. Real estate market participants use appraisals to negotiate fair prices when buying or selling farm properties. Lenders use appraisals to assess the value of the farm property as collateral for operating loans or mortgages. Appraisals assist in estate planning by providing an accurate valuation of farm properties for inheritance and tax purposes. Investors utilize appraisals to evaluate potential returns and risks associated with investing in agricultural properties. Delta Institute presents a modified “Sales Comparison” approach to factor measurements of soil health into Michigan farmland appraisals. This “proof-of-concept” approach was tested on several southeastern Michigan farms in 2024.