Michigan Soil Health Appraisal Pilot Report

Delta Institute tested a proof-of-concept approach to incorporating measurements of soil health into the farm real estate appraisal process in Michigan. The Project Team piloted this approach on 4 subject properties in southeastern Michigan in 2024 that were viewed to be reasonably indicative of many Midwestern farm properties. The scope of the appraisal encompassed the Income Approach and Sales Comparison Approach. A comparable sale search was conducted within Lenawee and Hillsdale Counties for vacant row cropland sales that have transacted within the last three years. The Project Team not only successfully created a replicable soil sampling methodology and “Soil Health Index” to be utilized in future appraisals but also determined that the Sales Comparison approach may be best suited for incorporating soil health into the land valuation process at scale.