Appraisals For Full-Time Farm Programs
Appraisals for AGRIfinancial Services's full-time farm loan programs must be performed by a Certified General appraiser licensed to appraise in the state where the property is located. The appraiser must be qualified to appraise the type of property described in the engagement.
All appraisers must be engaged through a formal, written engagement process. A sample engagement letter along with AGRIfinancial appraisal guidelines for full-time farm loans can be found listed below.
The preferred appraisal report format is the standard Uniform Agricultural Appraisal Report (UAAR). However, complete, well documented narrative reports and standardized form sets can also be submitted in lieu of a UAAR.
There are forms unique to AGRIfinancial and our investors that are required on all appraisals and others that are optional but are provided to assist the appraiser in meeting our requirements.
Engagement Letter – This is a AGRIfinancial form and is required for all loans. The engagement letter is supplemented by these Appraisal Guidelines to provide the appraiser additional detail relating to the requirements of the engagement letter. We strongly encourage appraisers to review a complete copy of these guidelines.
* 1023 Engagement Letter
1027-Summary Appraisal Assignment – This form is required as part of all FTF and Specialized Facility property appraisals reports that are documented in a narrative-style or by use of a report form set other than the UAAR. AGRIfinancial needs an original copy signed by the appraiser. This form is used to indicate where in the appraisal report the information that responds to the applicable requirements appears in the report and, second, as a checklist to ensure each requirement was addressed. The appraiser confirms, by their signature on page 2 of the form, that they have included the information as indicated by the appraiser’s entries on the form.
* 1027 Summary Appraisal Assignment Requirements
Form 1034, Form 1035, Form 1036 – The use of these forms is at the appraiser’s option, but an alternative form or table must provide an equivalent level of data and analysis detail. Form 1034– Permanent Planting Data Summary, Form 1035 – Income Approach, and Form 1036 – Sale Data Summary are all in Microsoft Excel files for use by appraisers, as applicable, in a narrative style appraisal report. Although appraisers usually have some kind of data summary and analysis forms of their own design, these forms illustrate the specific permanent planting, income approach, and sale data our investors require. The appraiser may use these forms as part of the exhibits in a narrative report or in place of similar pages in a form set, such as the UAAR, or in a form set other than the UAAR.
* 1034 Permanent Planting
* 1035 Income Approach
* 1036 Sale Data Summary
Form 1037 – Assumptions and Limiting Conditions – This form is a required part of all Full-Time Farm and Specialized Agricultural Facility property appraisal reports. This form establishes a consistent set of “Assumptions and Limiting Conditions” that AGRIfinancial can accept as normal in an appraisal assignment, and provides a way for appraisers to add to the normal set as needed. The appraiser uses this form to state the assumptions and limiting conditions, and any extraordinary assumptions or hypothetical conditions that were applied in the appraisal. The report reader uses this form to identify those factors and consider them in the underwriting process.
* 1037 Assumptions and Limiting Conditions (RTF)
Form 1010A – Environmental Survey – This form is a required part of the Addenda in all Full-Time Farm and Specialized Agricultural Facility property appraisal reports. This form is designed to document information about the presence or absence of hazardous materials, underground storage tanks, and other property related conditions. The appraiser uses the form during the property visit to check whether the conditions observed at the property are consistent with the information provided by the party that completed the form. If the conditions are not consistent, the appraiser is to note the differences in the appropriate section of the form. A copy of the form, signed by both parties, is to be included in the addenda to the appraisal report.
* FTF environmental disclosure 1010A
Form 1013A – Irrigation and Drainage Supplement – This form is required as part of the appraisal report addenda when the property includes irrigation or drainage conditions that affect value. This form provides specific detail on the source, quality, and cost of irrigation water, and drainage conditions and costs. This form, completed by the property owner or the borrower, is to be available to the appraiser at the time of the property visit. The appraiser uses the information in the completed form to identify irrigation and property productivity and to compare that information with field observations and other irrigation and drainage information. A copy is to be included in the Addenda to the appraisal report to show that the Form 1013A information was available to the appraiser.
* FTF Irrigation & Drainage Supplement 1013A
Report Certifications – The appraiser signed and dated certification must comply with the requirements stated in USPAP and include the following text in the appraiser’s certification or in the appraiser-signed engagement letter included in the Addenda to the appraisal report:
“I am aware of the requirements stated in the Farmer Mac Collateral Valuation Supplement to its Seller/Servicer Guide, and have completed this assignment in accordance with those requirements as they applied in this assignment”“Unless otherwise disclosed in this report, I have not been engaged to appraise the subject property for the purpose of market value by any party except (the client) (my employer), as identified in this report, within the 12 months prior to the date of value in this report.”“My analyses, opinions, and conclusions were developed and the appraisal and this report has been prepared for use in a lending transaction that may include Farmer Mac as an intended user.”
* USPAP Report Certifications
Sales Data Summary
Assumptions and Limiting Conditions (RTF)
Certifications - USPAP and FAMC
FTF Environmental Disclosure
FTF Irrigation & Drainage Supplement