can create environmental liabilities that become the responsibility of a new owner.
Emerging contaminants
Emerging contaminants such as per- and polyfluoroalkyl substances( PFAS) have become an increasing focus for agricultural producers. Potential sources include historical biosolid applications, neighboring industrial facilities, or contaminated groundwater. Although regulatory requirements continue to evolve, purchasers should understand whether PFAS may present a future operational or transactional risk and whether additional environmental evaluation is appropriate.
For a more detailed discussion of PFAS and the potential risks PFAS may pose to agricultural land, readers can refer to the June issue’ s article discussing the dangers of PFAS to agricultural land.
Looking beyond today’ s operation
Environmental due diligence should also consider what the buyer plans to do with the property. A purchaser intending to add livestock barns, grain storage, feed facilities, or other improvements may encounter wetlands, drainage issues, historical contamination, or permitting constraints that affect the project’ s cost or schedule.
For example, a livestock producer purchasing acreage to construct additional confinement barns should determine whether wetlands or other regulated features affect the proposed footprint and whether existing environmental conditions or permits could constrain the project. Identifying these issues before closing allows purchasers to incorporate them into development planning rather than confronting unexpected delays after the acquisition.
Managing environmental liability
One of the most common misconceptions in real estate transactions is that a purchaser cannot be responsible for
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