In the realm of capital and collateral, the appraised value of dairy real estate, including specialized facilities, takes on great importance.

When evaluating new loan requests or reviewing existing credit, various factors come into play, each holding significance. These factors are commonly referred to as the 5 C's of finance: character, capital, capacity, conditions and collateral. Meeting the standards set for these factors is essential for obtaining approval.

Farmland and buildings values in Idaho jumped over 10% in the last 12 months.

Dairies are a very "niche product,” according to Jonathan Verhoeven, realtor at Schuil & Associates Inc. in Visalia, California. The average time on the market is six months to a year, with some dairies taking even longer to be sold.

Many agricultural producers are challenged with rising costs of inputs and inflation. On top of that, many are trying to support multigenerational ownership. Due to this, many ag producers have found long-term sustainability requires diversification.