What is the loan difference between raw land and improved ag land?
Improved ag land — irrigated, fenced, leveled, with power and legal access — appraises higher and borrows more at the same LTV. Raw land borrows less per acre and gets more scrutiny on access, utilities, and exit, because there is no income and thinner comparable sales.
The improvements that move appraisals most are boring ones: a permitted well, mainline irrigation, deeded road access, and three-phase power at the property line. A parcel with all four can appraise at a multiple of the raw section behind it. Buildings matter less than buyers expect on working ground.
Raw land underwriting is really exit underwriting. With no crop income, the lender wants to know how the loan retires: development, planting, resale, or refinance once the property has history. A 12–36 month bridge with a clear plan is the natural structure; a 20-year amortizing loan on raw dirt is hard to find anywhere.
Legal access is the silent killer on raw parcels. If access runs across a neighbor by handshake, fix it with a recorded easement before or at closing. Title companies will exception it, appraisers will discount it, and lenders will cut LTV or pass.
The Turnrow angle
Turnrow finances both — raw land and improved ground — up to 70% of appraised value. Raw parcels need a credible exit plan; improved parcels mostly need clean title and water documentation.
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