Appraisal
A document that gives an estimate of the fair market value of your agricultural property. An appraisal is generally required by all farm lenders before a loan can be made. Most lenders require that the appraisal be performed by a state certified, general appraiser that is familiar with your type of property and the appraiser consider the three standard approaches to value. It is also important to note that lending institutions cannot accept appraisals ordered by persons other than the lending institution. In some situations, appraisals can be used if another lending institution ordered the appraisal, will provide authorization, and the appraisal is still relevant - which is generally within one year.
