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Due diligence

 
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We look before you leap.

Everything we do—acquisitions, dispositions, farm management and consulting—starts and ends with due diligence. With the benefit of our proprietary FarmBase™ data analysis system, we can quickly make a Go/No-Go decision, evaluate the 3 R’s (Returns, Risks and Resources), and if warranted, delve even deeper. We DO the DUE DILIGENCE that is DUE.

We are able to quickly and efficiently underwrite (or manage the underwriting process for) agricultural investments from an operational, financial, risk management and resource perspective, leveraging other IT and human resources like CRM, GIS and project management software, and aligning with preferred vendors nationwide.

For Land Owners

Scythe & Spade can help land owners anticipating a future sale to develop a detailed due diligence report that even the most discerning investor/buyers will appreciate. Every farm Scythe & Spade serves is both sale- and tour-ready when our due diligence is complete.

For Land Buyers

We look for every reason not to do a deal and then ways to mitigate those risks. The results are presented in a bound study with necessary mapping, photographic documentation, charts, graphs, and measurements summarizing the findings.

A Thorough Process

Scythe & Spade takes a methodical approach to due diligence:

  • Coordinating, verifying and summarizing accurate legal descriptions with respect to Deeds, Title Reports, Assessor’s records and Surveys if requested
  • Coordinating,  reviewing and summarizing environmental and biological studies
  • Coordinating, reviewing and summarizing local and regional real estate values, including formal appraisals if requested
  • Documenting, analyzing and summarizing the condition of land, labor and capital resources, on or benefiting the Property
  • Identifying, verifying, analyzing and summarizing all depreciable assets for insurance and tax depreciation scheduling
  • Analyzing and summarizing current leases based on area economics and current market trends
  • Analyzing and summarizing adjoining property ownership and uses
  • Documenting and summarizing water rights with detailed maps identifying sources, diversion points and places of use, including pumps, pump locations, pipelines and inventory of equipment as well as analysis of historical expenses and quantities used compared to normal and customary uses
  • Analyzing and summarizing soil types and classifications on the property with projections for crop yields or carrying capacities, including soil profile and fertility tests if requested
  • Documenting and summarizing municipal zoning and flood designations
  • Analyzing and summarizing participation in and compliance with applicable government programs
  • Analyzing and summarizing the USDA’s Farm Service Agency’s and Natural Resource Conservation District programs in detail
  • Reviewing,  analyzing and summarizing real estate taxes, Federal and State Grazing Lease rates and Irrigation District Assessments
  • Verifying that ag classifications are in effect with the county, in addition to any other zoning designations (including CAFO status)
  • GIS mapping of the property covering all resource classes and ownership
  • Preparing pro forma cash flow budgets for the property