I used to think surface acreage and soil quality were the primary due diligence items when evaluating a rural purchase. I was wrong, and watching a neighbor lose his operation inside of three years corrected me fast.
In prior appropriation states, the water rights attached to a parcel can be worth more than the dirt itself — or they can be nearly worthless. A 1987 priority date on an over-appropriated ditch system means you're last in line during any shortage year. That's not a footnote. That's your farming future.
Before you close on anything in the arid West, pull the actual decree, verify the priority date, confirm historical beneficial use, and check whether those rights have been partially abandoned or fallowed into jeopardy. Title insurance won't catch this. Your realtor almost certainly won't flag it.
I've seen buyers pay premium prices for land with paper water that hasn't delivered a reliable acre-foot in a decade.
How many of you have actually reviewed a water decree before closing, and what did you find?