Drainage Tile – A Transformative Improvement

May 14, 2025

Drainage tile is one of the most effective long-term investments a landowner can make to boost both farm productivity and value. The primary purpose of field tile is to remove excess water from the soil, allowing for healthier crop development and earlier field access, especially during critical planting and harvest windows. This improved timeliness can be a major driver of yield improvements, particularly on heavy soils that do not drain easily. When fields dry out evenly and in a timely fashion, crops grow more uniformly, nutrient availability improves, and equipment passes become more efficient and less damaging to the soil structure.

Despite its clear agronomic benefits, it is important to remember that drainage tile requires a significant investment. Most farms will see total project expenses in the range of $1,200 to $1,400 per tiled acre. This estimated range includes the materials, contractor fees, mapping, installation, and any related design or surveying work. It is important to remember that this range is just an estimate, and each farm has unique needs and associated costs. While that price tag may seem steep at first glance, it’s important to remember that tile is a capital improvement that pays dividends over time. These dividends are not just in crop output, but also in land value and desirability from farm tenants.

The financial return on a tiling project depends largely on the farm’s operational and leasing structure. On a cash rent agreement, drainage tile makes a property more appealing to tenants by widening windows for field work and improving yield potential. A well-drained farm can command higher rental rates and attract more experienced, long-term tenants. If the cash rent agreement has a bonus or flex component, the benefits are even more direct. Higher yields translate to larger rent payments for the landowner, tying the improvement directly to higher annual cash flow. In any other arrangements where the landowner has a share of the crop, such as crop share or custom, the same benefits are realized, usually to a larger extent.

Beyond rental and production returns, drainage tile offers immediate equity gains. A comprehensive drainage project, especially one that resolves persistent wet spots, can significantly increase a farm’s market value. While exact figures vary by region and farm quality, significantly tiled land often sells for a premium to farms that are not tiled. In this way, tiling acts not just as a yield enhancer, but also as a direct investment to the landowner’s equity in their farm. The key question to this decision becomes: “how much equity are you actually gaining?” The answer depends on the specific conditions and market dynamics of your farm.

Several factors should be considered when deciding whether an investment in drainage tile is appropriate. First, closely assess the poorly drained areas on your farm. Are these areas causing total crop loss or simply reducing yield? If it’s the latter, how much are you losing per acre in bushels and dollars? Understanding the severity of any drainage shortcomings will help to guide the scale and urgency of your investment. Second, determine what level of return is being sought. Is the goal to break even in a set number of years, or is a more gradual payoff that accrues over time through improved yields and higher land value acceptable? It is wise to seek your tenant’s perspective. Farmers often know the field’s trouble spots better than anyone. Their input can help you identify where tiling will have the greatest impact, avoid unnecessary work, and ensure the project aligns with the most pressing needs of the farm.

Drainage tile is a large investment, but it is often the most transformative improvement that can be made to a farm. In an age of rising input costs and increasing climate variability, reducing yield drag and improving consistency across acres can make a significant difference in farm profitability and long-term viability for a landowner.

Authored and drone video created by: Austin Hornstein, Accredited Farm Manager, Worrell Land Services LLC