Consultation • Valuation • Brokerage Services
Your investment. Your Farm.
Land Consultation
Protecting Assets - Preserving Wealth.
NOW THAT YOU KNOW WHAT YOUR FARM IS WORTH — WHAT’S NEXT?
KEEPING THE FARM:
Lease— Who is your tenant going to be? Is the current arrangement written or verbal? How long has the current arrangement been in place? Is the lease at current market price? Is there any language as to time of lease? (How it ends, does it address double cropping, if pasture,does it address time in, time out and how many cows and calves?) Is there language to keep your farm’s soil in good condition? Leases need to be revisited and re-written every year.
Other Income— Does the farm have any other attributes that could bring in additionalincome for you and your family? Additional leases for recreational use can add value to yourfarm-they can also create liability.
Improvements— Is there water availability to develop for irrigation? Is there surface water that can be developed for ponds or a watershed lake? Water development always creates value.
Title— Are there other siblings involved? Are the interests divided or undivided? Undivided interests are very common and can create a whole host of problems. How will you take ownership: individually, or as an LLC or partnership?
Management of the Farm— Do you have the knowledge and the time to look after your farm,or will you need someone to look after your investment if you live out of town or out of state?These are just a few of the many situations we have helped clients and customers with.
SELLING THE FARM: Your tenant or family member wants to buy the farm; accurate valuation is the first step. Results is engaged to either negotiate on behalf of the owner, prepare contracts and close the deal, or in some instances the buyer and seller have worked out their own terms, but need help with contract preparation, title work, closing, and exercising 1031 exchanges.What are your plans for the sale proceeds? If the basis is stepped up, you should not have capital gains to pay. If you inherited the farm a while back, and your basis is lower than the market price today, an educated decision would need to be made as to whether to pay the capital gains or exercise an exchange.What are your options if you want to sell on the open market? There is no one size fits all forfarms! Experienced brokers can evaluate what would be best for the geographic location of your farm.
1031 Exchange— Results has helped exchange thousands of acres, both forward and reverse.
Valuation
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Consulting
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Brokerage
Services
Whether you plan to sell your property or retain it, you need to have an accurateassessment of your farm’s value. Broker Price Opinions can be of great value. ResultsOpinions consider soils, capabilities, water appropriation, minerals, wind leases,solar leases, and of course, location.
Valuation and Broker Price Opinion in Agriculture Consulting
Understanding the value of a farm is crucial for any landowner, whether the goal is to keep or sell the property. This is where the importance of land consultation and agriculture consulting comes into play. These services provide critical insights into the value and potential of agricultural land, guiding owners through various decisions and strategies.
Keeping the Farm
Once the value of a farm is established, several factors come into consideration for those who choose to retain their property. Key among these is lease management. A well-structured lease, whether written or verbal, should reflect current market prices and include terms about its duration, farming practices, and conditions for soil preservation. Revisiting and updating the lease annually is a good practice to ensure it remains relevant and beneficial for both parties.
Other income opportunities can arise from the farm’s unique attributes. For instance, leasing land for recreational activities can generate additional revenue. However, this also introduces liability issues that need to be carefully managed.
Improving the farm can also add value. Developing irrigation systems or creating ponds and lakes can significantly increase the land’s worth. These enhancements not only improve the farm’s productivity but can also make it more attractive to future buyers or lessees.
Ownership and management structures are other vital aspects to consider. Issues arise, especially when multiple siblings share undivided interests in the property. Deciding on the form of ownership, whether individually, through an LLC, or a partnership, can have long-term implications on the management and future disposition of the property.
Selling the Farm
When selling, accurate valuation is the first step, especially if the buyer is a tenant or a family member. Engaging a professional service like Results for negotiation, contract preparation, and closing deals ensures that the transaction is fair and beneficial to all parties involved. Decisions about the sale proceeds are critical too. If the basis of the farm has been stepped up, capital gains taxes might not be a concern. However, if the basis is lower than the market price, options such as paying capital gains tax or opting for a 1031 exchange need to be considered.
Each farm is unique, and there’s no one-size-fits-all approach for selling on the open market. An experienced broker can provide a tailored strategy that best suits the geographic location and specific characteristics of your farm.
1031 Exchange
For those considering a 1031 exchange, working with a company experienced in both forward and reverse exchanges is beneficial. This option allows the seller to defer capital gains taxes by reinvesting the sale proceeds into a new property.
Accredited Land Consultants (ALCs)
In the realm of land brokerage, Accredited Land Consultants (ALCs) play a pivotal role. ALCs are land real estate brokers or agents who have completed a rigorous education program and have a high level of experience and transaction volume. Their expertise in various aspects of land transactions, including legal, soil types, investment analysis, timberland valuation, and more, makes them invaluable in representing clients in land deals.
Expertise of ALCs
ALCs bring a specialized knowledge critical for successful land transactions. Their understanding of the legal, environmental, and market aspects of land sales ensures that they can competently represent their clients’ best interests.
Experience of ALCs
To become an ALC, one must demonstrate extensive experience in land sales or brokerage. This experience ensures that ALCs are well-equipped to handle the complexities and nuances of land transactions.
Ethical Integrity of ALCs
ALCs adhere to high moral standards and follow a strict code of conduct. This ethical integrity ensures that they conduct their business in a manner that prioritizes the client’s best interests.
Conclusion
Whether you are keeping or selling your farm, understanding its value through land consultation and agriculture consulting is vital. Engaging the services of professionals like ALCs ensures that you receive knowledgeable, ethical, and tailored advice. This guidance is crucial in navigating the complexities of agricultural land consultation, farm consultation, farmland consultation, and land consultation services, leading to informed decisions that maximize the value and potential of your agricultural investment.
Have Questions About Your Land?
Results Land Co is here to help.
Just fill out the form below or give us a call.
Results Land Co.
- 620.465.3499
- 21309 S. Willison Rd Haven, KS 67543 US
