Seller guide

How to Sell a Citrus, Farming, Grain or Irrigation Business in the Rio Grande Valley

How RGV citrus, row-crop, grain and irrigation businesses sell: asset-based pricing, water rights, ag tax rollback, TDA and FDA rules, buyer types.

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By Spencer Gareiss, Delta BrokersLast reviewed November 12, 2026

Quick answer

Prepare 12 to 24 months ahead. Separate land, water rights and equipment from the operating business, document yields and contracts, and review ag tax and water status. Most Valley farm and processing deals are priced on assets, while irrigation and landscape distributors sell on earnings to national consolidators. A clear plan for land and water drives the outcome.

Who buys farms, citrus, grain and irrigation businesses in the Valley

  • Growers and packers already in the Valley adding groves, packing capacity or acreage. Buyers of this type have bought here recently.
  • Opportunistic buyers of idle or distressed processing assets who plan restarts.
  • National irrigation and landscape supply distributors buying family distributors.
  • Grain merchandisers and cooperatives that buy country elevators, though few elevator deals have surfaced in the Valley.
  • Land and water investors who buy the real property rather than the operating company.

What raises your price

  • Secure irrigation water rights or district allocations, documented with the watermaster.
  • Multi-year supply, packing or marketing contracts with buyers.
  • Documented yields and costs per acre over several seasons.
  • Well-maintained equipment, packing lines or storage with service records.
  • Food safety certifications and Produce Safety Rule compliance for growers and packers.
  • For irrigation distributors: contractor customer base, multiple branches and steady repeat orders.
  • A farm manager or crew leaders who run the season without the owner.

What lowers your price

  • Uncertain water supply, which buyers price in immediately.
  • Land, equipment and operating results mixed in one set of books.
  • Disease quarantine or crop loss history with no recovery plan.
  • Unrecorded leases, handshake crop shares or unclear title.
  • Heavy dependence on one packer, mill or customer.

How deals are priced

We found no reliable public small-deal multiple for Valley farming or ag processing. In practice these sales are built around assets: land, water rights, groves, equipment and plants, with the operating business adding value only when earnings are steady and documented. Irrigation and landscape distributors are the exception and are priced on EBITDA like other distributors. Small deals vary widely.

Pricing sources: TCEQ: Rio Grande Watermaster Program; Texas Comptroller: Agricultural and timber property tax

Licensing and closing risks

  • TCEQ Rio Grande Watermaster: Lower Rio Grande water rights are held as accounts administered by the watermaster, and sales or contracts of water move through its forms and records.
  • Texas Comptroller agricultural appraisal: if land changes to a non-agricultural use, the owner who changes the use owes a rollback tax for each of the prior three years of lower appraisal.
  • FDA Produce Safety Rule (21 CFR Part 112): covered farms that grow or pack produce must meet its standards, and buyers will check records.
  • Texas Department of Agriculture: pesticide applicator licenses belong to individuals, so the buyer needs licensed staff in place at closing.
  • Texas Comptroller successor liability (Tax Code 111.020): request a certificate of no tax due before closing.

Sale-readiness scorecard

Answer eight yes or no questions. Your score and the items to fix first update as you go. Nothing you click is saved or sent anywhere.

  1. Are your water rights or allocations documented with the watermaster?

    Water is often the most valuable asset in the deal.

  2. Are land and operations on separate books?

    Buyers price the land and the business differently.

  3. Can you show three or more seasons of yields and costs?

    Steady results support value above asset value.

  4. Are leases and crop agreements in writing?

    Handshake deals do not transfer reliably.

  5. Do you know your ag tax rollback exposure?

    It can shift who pays at closing.

  6. Is your title clean and surveyed?

    Title issues are a common cause of delays.

  7. Do you have licensed applicators other than yourself?

    Licenses belong to people, not the business.

  8. Is any one customer under 30% of sales?

    Losing a packer or mill can wipe out a season.

0 of 8 ready (0 answered)

Answer the questions above to see where you stand.

Your preparation checklist

  1. Separate land, water rights, equipment and operations into a clear asset list.
  2. Confirm water right accounts or district allocations with the watermaster.
  3. Pull three to five seasons of yields, costs and revenue per acre.
  4. Put leases, crop-share and marketing agreements in writing.
  5. Get title work and surveys on owned land.
  6. Review ag appraisal status and any rollback tax exposure with your CPA.
  7. List equipment with age, hours and service records.
  8. Organize food safety and Produce Safety Rule records.
  9. Make sure licensed applicators besides you are on staff.
  10. Decide which assets you want to sell, lease or keep.

How long a sale takes

Asset-based farm sales often take 6 to 12 months, and longer when water rights, surveys or title issues need work. Irrigation distributor sales follow a normal business sale timeline of about 6 to 9 months.

The Rio Grande Valley angle

Under the 1944 Water Treaty, Mexico owes the U.S. 1.75 million acre-feet of Rio Grande water per five-year cycle, according to TCEQ, and shortfalls contributed to the 2024 closure of the Valley's Santa Rosa sugar mill, the state's last. The two countries agreed on a technical water plan in February 2026, but buyers still look first at water security.

Thinking about selling? Start with a free, confidential consultation

Talk with a Delta partner about your farms, citrus, grain and irrigation business. We will tell you plainly what buyers will look at, what your business may be worth, and what to fix first. No obligation, and nothing you share leaves us.

This guide is general information, not legal or tax advice. Delta Brokers is a business brokerage, not a law firm or CPA firm. Rules, agency practice and market multiples change, and small deals vary widely; confirm every requirement with the agency named and with your own attorney and CPA before you act. Last reviewed November 12, 2026.

Sources

Sources reviewed November 12, 2026
  1. KSAT: Texas' only sugar mill shuts down after 50 years due to water shortage (March 2024)
  2. Texas Tribune: South Texas farmers in peril as the Rio Grande Valley runs dry again (April 2024)
  3. TCEQ: Texas Relies on 1944 Treaty Water
  4. TCEQ: Rio Grande Watermaster Program
  5. Texas Comptroller: Agricultural and timber property tax
  6. FDA: FSMA Final Rule on Produce Safety
  7. Texas Department of Agriculture: Pesticides
  8. Texas Comptroller Publication 98-117: Successor liability when buying a business

Related guides

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FAQ

Frequently asked questions

How are farms and groves priced in the Valley?
Mostly on assets: land, water, trees, equipment and facilities. The operating business adds value when it shows steady earnings and contracts. Public multiples for small Valley farm deals are not available, and small deals vary widely, so start with an asset list and several seasons of results.
Do my water rights go with the land?
Not always. Lower Rio Grande water rights are held as accounts administered by TCEQ's Rio Grande Watermaster, and sales or contracts of water move through its records. Confirm what you hold and how it can transfer before you market the property.
Will I owe rollback taxes if the buyer changes the land use?
Under the Texas Comptroller's guidance, the owner who changes land to a non-agricultural use owes a rollback tax for each of the prior three years of lower appraisal. Who bears it should be agreed in the contract. Ask your CPA to estimate the exposure.
Does Delta sell farmland?
Delta sells businesses and earns fees on the business only. We never earn real estate commissions. When land is part of the deal, we work alongside your real estate broker and attorney so the business and land pieces fit together.
Who buys irrigation and landscape supply companies?
National distributors have been buying family irrigation and landscape suppliers across Texas, usually paying for contractor customers, branch locations and steady repeat orders. Unlike farms, these businesses are priced on EBITDA. Clean inventory, documented customer accounts and branch managers who run the day help you get the best offer.
How long does an ag sale take?
Plan on 6 to 12 months, and sometimes longer when title, surveys, leases or water rights need work. Starting the paperwork a full season early helps, as does confirming your water accounts with the watermaster and estimating any rollback tax with your CPA before buyers ask.