What Every Texas Buyer Should Know Before Purchasing Farmland

A Texas-Specific Farmland Guide for Buyers, Homesteaders & Investors – Scroll down to download the free pdf guide.

Buying Farmland in Texas Isn’t Like Buying Land

Soils, water rights, tax structures, ag exemptions, and infrastructure vary across every Texas county — and the wrong oversight can cost buyers tens of thousands of dollars. This page breaks down the key due-diligence steps from the Texas Farmland Buyer’s Guide so you can evaluate land with clarity and confidence.

Use this guide to:

• Evaluate farmland opportunities

• Understand true land capability

• Avoid expensive surprises

• Ask the right questions before making an offer

• Build a profitable farm, ranch, or homestead operation

What Has the Land Been Used For?

Before buying, understand the land’s historical use — whether row crops, grazing, CRP enrollment, oil and gas activity, hunting leases, or prior chemical application. Past use affects soil condition, contamination risks, compaction, and long-term productivity. Request the RRC map, FSA maps, and NRCS practice history to see how the land has been managed over time.

Is the Land Productive? (Soils, Yields and Capability)

Texas farmland value depends on three pillars: soil quality, water availability, and historical productivity. Use the NRCS Web Soil Survey to identify soil class, drainage, organic matter, and capability for crops, grazing, or hay. Review past yields for hay, row crops, or stocking rates to understand the land’s true output potential and how it might perform in dry or wet years. Use the USDA Web Soil Survey link below to search for your farm location and determine your soil type from the map.

Improvements Needed

Major improvements can dramatically affect the usability and real cost of Texas farmland. Evaluate fencing and cross fencing, water lines and troughs, barns and equipment sheds, electricity access, farm roads and culverts, irrigation potential, brush or mesquite clearing, and drainage. Estimating these costs early helps you protect your investment and avoid surprises after closing.

We have trusted allied resources who can assist with cedar and mesquite clearing, land shaping, road building, and water system improvements.

Property Taxes and Ag Exemptions

Ag and wildlife valuations can significantly reduce annual property taxes in Texas. Verify the current exemption, the qualifying use (grazing, hay, wildlife management, etc.), acreage requirements, and the County Appraisal District history to ensure it will transfer. Losing the valuation can trigger five years of rollback taxes plus interest, which can drastically change your budget and overall return.

Zoning, Easements and Deed Restrictions

Texas farmland often carries easements and restrictions that affect how the property can be used. Review any utility easements, pipeline corridors, water line easements, oil and gas leases, solar or wind development options, floodplain limitations, and no-build zones. Use county records, the survey, and the title commitment’s Schedule B to identify and understand all recorded restrictions before you commit.

Soil and Water Tests

Soil and water tests offer a quick snapshot of the land’s productivity and potential issues. Soil tests show pH, nutrient levels, and any amendments needed to support healthy crops or pasture. Water tests confirm well output and quality for irrigation or livestock. Together, these results help you determine whether the property is ready for production or will require additional investment before use.

Utilities – Water and Power

Confirm whether the property has co-op water, a private drilled well, a traditional windmill well, a small community water system, or rainwater collection. Also verify electricity availability through providers such as PEC, Oncor, Bartlett, or Bluebonnet, and whether an active meter is already in place. If utilities must be added or extended, obtain cost estimates in advance, as these expenses can change the feasibility of the property.

Water Rights in Texas

Texas water rights vary between surface water and groundwater, and the rules can be complex. Under the Rule of Capture, groundwater beneath your land is generally yours to pump, but local Groundwater Conservation Districts can regulate drilling, production, and spacing. Surface water is owned by the State of Texas and often requires permits to divert or use. Review local GCD rules, well logs, existing rights, and any riparian access so you know exactly what you are buying.

Property Layout and Configuration

Property layout determines how easily the land can be used and managed day to day. Field orientation, shape, and road access influence equipment efficiency, drainage patterns, and where barns or storage should sit. Wind exposure and low spots impact crop performance, erosion, and livestock comfort. In Texas’ varied terrain — from Blackland clay to Hill Country rock — a thoughtful layout helps you maximize usable acreage and align the property with your agricultural goals.

Texas Farmland Buyer’s Checklist

Reference this checklist as you begin evaluating any farmland purchase. It covers historical land use, soil maps and productivity, water rights and well logs, utility availability, easements and restrictions, ag valuation status, rollback tax risk, fencing and infrastructure, floodplain and drainage, title, survey and mineral rights, estimated improvement costs, and financing pre-qualification. Working through these items ensures you approach each opportunity informed, prepared, and strategic.

Download the Farmland Checklist

Ready to Buy Farmland in Texas?

Whether you are investing, homesteading, building a cattle operation, or securing long-term rural land, I help Texas buyers navigate soil, water, utilities, exemptions, and due diligence with clarity and confidence. Reach out to talk through your goals and next steps.

Sage Howell
Texas Land Sage – West Pole Partners
Phone: 817-408-8585
Email: sage@gowestpole.com
Website: www.texaslandsage.com