Irrigation Pivots

by Darren Ryals

General Certified Real Estate Appraiser

February 2022

Irrigation pivots are used for adding water to growing crops during times of low rainfall. 

They can vary from basic to highly advanced, high-tech setups.  The water supply is typically from a lake, a well, or some combination of the two.  At times the water supply is on adjoining land and requires an easement for access to the water.

The contributory value of irrigation pivots is based mainly on length in feet and their age.

In general, our data show that once they exceed 10 years of age, their value to the farm decreases quickly and may show little or even no added value to the farm when compared to other sales of similar bare land in the same area. This can be true even if the pivot is in good working order and still in use. However, if an older pivot has been rebuilt or located in an area where pivots are frequently used, then even an older pivot may still have considerable value in its respective market.

The type of land a pivot is on also plays into how likely it is to add significant value to a farm. 

If the soils are sandy, irrigation will be needed much more than on a farm that has poor drainage or lays lower than surrounding farms and is, therefore, naturally wetter.

Conclusion

In conclusion, the area in question, the soil types present on the farm, and the age of a pivot are points of consideration in whether an irrigation pivot will be likely to add additional value to a farm. At Spurgeon Appraisals, we have experience in appraising all sorts of farms, including those making use of irrigation pivots. Email us today with your appraisal needs.